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Financial Results for FY2019

May 2020

2

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including

estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,”

“strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of

strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation:

incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our

assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; impairment of the carrying value of our long-lived assets; problems

related to our information technology systems, including as a result of cyber attacks; the effect of financial transactions entered into for hedging and other similar purposes; failure to

maintain required capital adequacy ratio levels and meet other financial regulatory requirements; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to

implement the 5-Year Business Plan, realize the synergy effects of “One Mizuho, ” and implement other strategic initiatives and measures effectively; the effectiveness of our operational,

legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and

Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on

December 26, 2019, both of which are available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a

result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

Definitions

FG: Mizuho Financial Group, Inc.

BK: Mizuho Bank, Ltd.

TB: Mizuho Trust & Banking Co., Ltd.

SC: Mizuho Securities Co., Ltd.

AM One: Asset Management One Co., Ltd.

IR: Mizuho Information & Research Institute, Inc.

RI: Mizuho Research Institute Ltd.

RBC: Retail & Business Banking Company

CIC: Corporate & Institutional Company

GCC: Global Corporate Company

GMC: Global Markets Company

AMC: Asset Management Company

GPU: Global Products Unit

RCU: Research & Consulting Unit

2 Banks: Aggregate figures for BK and TB on a non-consolidated basis

Group aggregate: Aggregate figures for BK, TB, SC, AM and other major subsidiaries on a non-consolidated basis

Company management basis: management figure of the respective in-house company

Consolidated Net Business Profits: Consolidated Gross Profits – G&A Expenses (excl. Non-Recurring Losses) +

Equity in Income from Investments in Affiliates and certain other consolidation adjustments

Net Income Attributable to FG: Profit Attributable to Owners of Parent

Foreign exchange rate

Mar-19 Mar-20

USD/JPY 111.01 108.83

EUR/JPY 124.56 119.65

Financial Accounting (TTM at the FY end)

Management accounting (Planned rate)

FY19 Planned rate

USD/JPY 109.00

EUR/JPY 123.17

Forward-looking Statements

Unless otherwise specified, the financial figures used in this presentation are based on Japanese GAAP

This presentation does not constitute a solicitation of an offer for acquisition or an offer for sale of any securities

3

Mizuho Group

1. Also comprised of other organizations such as the BK Industry Research Dept., TB Consulting Dept. and Mizuho-DL Financial Technology. 2. Mizuho Private Wealth Management.

3. Bank holding company established on October 1, 2018 with the consolidation of Trust & Custody Services Bank, Ltd. (TCSB) and Japan Trustee Services Bank, Ltd. (JTSB).

4. Top 200 corporations from Forbes Global 2000 (excl. financial institutions).

Mizuho Financial Group

FG BK/TB

S&P A- A

Moody’s A1 A1

Fitch A- A-

R&I A+ AA-

JCR AA- AA

(as of May 15, 2020)Credit Ratings

Individual

customers

SME, middle

market

borrowers, etc.

Securities

accounts

Coverage of listed

companies in

Japan

Forbes Global 200

(Non-Japanese

corporate clients)

70% 80%24M 100K1.8M

(Rounded figures)4

Global Products

Research & Consulting

AM One

RI

IR

Mizuho PW

JTC HD 3

To be merged

In-house COMPANIES

UNITS

Retail & Business Banking

Corporate & Institutional

Global Corporate

Global Markets

Asset ManagementM

izu

ho

Ban

k

Miz

uho

Tru

st

& B

an

kin

g

Miz

uho

Secu

rities

2

TrustBanking SecuritiesAsset

Management Research & Consulting

Other major subsidiaries1

4

Table of Contents

Policy for FY2020

‐ CEO message P. 42

‐ Assumptions for the FY2020 plan P. 45

‐ Earnings Plan P. 46

‐ Consolidated Net Business Profit P. 47

‐ Expenses P. 48

‐ Credit-related Costs P. 49

‐ In-house Company Plan P. 50

‐ Policy for FY2020 P. 51

‐ Outlook of Risk-weighted Assets P. 52

‐ Capital strategy P. 53

‐ Strategies by In-house Company P. 54

‐ Changes to group company structures P. 59

‐ Office relocation P. 60

‐ Channels P. 61

‐ Full roll out of the new HR strategy P. 63

Strengthening sustainability initiatives

‐ Strengthening our sustainability initiatives P. 65

‐ Strengthening group-wide sustainable business promotion P. 66

‐ Strengthening the management of climate change risks P. 67

Appendix

Today’s agenda

Responding to COVID-19

Financial Results for FY2019: Executive Summary

‐ Executive Summary of Financial Results P. 8

‐ Impact of COVID-19 P. 9

‐ Financial Results by In-house Company P. 10

‐ Overview of Income Statement P. 17

‐ Overview of Balance Sheet P. 19

‐ Consolidated Gross Profits P. 20

‐ Loans P. 23

‐ Non-JPY Funding P. 26

‐ Reference: Outlook of Loans P. 27

‐ Non-interest Income from Customer Groups P. 28

‐ General and Administrative Expenses P. 29

‐ Securities Portfolio P. 30

‐ Asset Quality P. 33

‐ Loan Portfolio Outside Japan P. 34

‐ Exposure in specific sectors and products P. 35

‐ Basel Regulatory Disclosures P. 36

‐ CET1 capital ratio and shareholder return policy P. 38

‐ Progress against the 5-Year Business Plan P. 39

‐ Progress on Fundamental Structural Reforms P. 40

P. 5

P. 6

5

Today’s agenda

FY2020 policy

Response to COVID-19

Financial results

In light of the various impacts on climate change and the like, we will strengthen our sustainability initiatives

We remain committed to fulfilling our mission as a financial institution, including

supporting customers with funding assistance and other services

We are continuing business operations while giving the utmost priority to ensuring

the health and safety of our customers and employees

In FY2020 we will strive to offset negative impact on earnings to the maximum

extent possible through expense control and thorough credit risk management

We recorded reserves from a forward-looking perspective, bringing our Net Income to JPY 448.5B. The amount of cash dividends remains unchanged at JPY 7.5 per share.

We are facing a crucial moment to tackle an unprecedented crisis and will fully exercise our financial functions while maintaining a strong defense, expand our business foundations with an eye towards the world after COVID-19 and deepen structural reforms.

6

Responding to COVID-19

Ensuring business continuity in light of

our role in the financial infrastructureSupporting customers’ funding needs

Shift work

and similar

approx. 90%

* Management basis, as of May 15.

Utilizing shift work and remote access in order to ensure

business continuity as a provider of financial infrastructure,

an essential part of society

BK retail branches in

Japan *

Business continuity measures

Continuing to operate with a focus on

essential operations which are required

to support customers’ lives and clients’

business continuity such as settlements

and loans.

Avoid crowding inside branches as much

as possible through restrictions on non-

essential operations and encouraging the

use of digital channels.

- Ensure the health and safety of our

customers and employees

At offices outside Japan where there are

limited retail operations, a large portion of

operations can be done remotely.

Employees are encouraged to work from

home to the extent possible without

impacting operations.

Committed to fully supporting clients whose cash flow has

been impacted by the spread of COVID-19

Strengthen our support for clients in need of funding assistance.

Fully respond to requests to change terms & conditions for existing loans.

Continued to respond to cash flow-related inquiries during Japan’s

“Golden Week” holiday, directing clients to multiple options for raising

funds, including the lending framework offered by the Japan Finance

Corporation and the like

2nd week

of May

Number of new loan

requests from RBC

customers:

increase of around

6,500

Inquiries from customers

2nd week

of March

Number of inquiries

regarding changing

the terms and

conditions of

housing loans:

increase of around

1,000

2nd week

of May

2nd week

of March

Financial Results for FY2019: Executive Summary

8

-1.11 %

0.16 %

-35.8

268.5

11.92 %

10.73 %

-171.7

448.5

-7.4 -34.2

470.2

-152.1

352.0

672.5 264.2

661.9

126.5 -133.3

-41.6

11.65 %

11.00 %

475.5

92.1

197.0

191.7

-24.4 -147.2

34.4

403.9 44.6

Solid performance in both Customer

Groups and Markets, exceeding

results of the previous fiscal year

which were JPY 603.1B (after

deducting the impact of one-time

losses)

In addition to the above, Net

Income increased YoY, primarily

due to the lack of one-time losses

posted in the previous fiscal year

In light of the impact of COVID-19,

recorded additional reserves

proactively

While continuing to reduce cross-

shareholdings, recorded an

impairment loss on some stocks

based on declining share prices

8.8% on a Basel III fully effective

basis

1. CET1 Capital Ratio is compared to March 2019. 2. Net Gains (Losses) related to ETFs (2 Banks) + Net Gains (Losses) on Operating Investment Securities (SC Consolidated) was JPY 10.6B (JPY -4.3B YoY).

3. Common Equity Tier 1. 4. Excluding Net Unrealized Gains (Losses) on Other Securities.

(JPY B) FY19 YoY

Executive Summary of Financial Results

4

1FY19 Q3(Apr-Dec)

FY19 Q4

Credit-related Costs

Net Income

Attributable to FG

CET1 Capital Ratio

Net Business Profits

Net Gains (Losses) related to Stocks

excl. Net Unrealized Gains

(Losses) on Other Securities

Net Business Profits + Net Gains (Losses) related to ETFs and others 2

Net Gains (Losses) related to Stocks – Net Gains (Losses) related to ETFs and others2

3

9

295.3 289.6 286.8307.8

45.0 45.0 45.0

60.0

12.2

Q1-Q3 Q4 only

Impact on Gross Profits

Credit-related costs Consolidated Impairment loss on stocks

(JPY B)

147.2

24.4

(JPY B)

Consolidated

Q1-Q3 Q4 only

Japanese stocks

32.9

6.5

Loan increase (Period-end balance)

JPY Non-JPYCommitment line drawn down

(rounded figures)(USD B)

53.8 53.6 53.754.7

Mar-20Jan-20Dec-19 Feb-20

(JPY T)

BK

1. Composition of increase/decrease: management accounting basis. 2. With readily determinable market value. 3. Including increases in lending other than COVID-19 impact.

4. Management accounting. 5. Including subsidiaries in China, USA, Netherlands, Indonesia, and others.

Impact of COVID-19

5

3, 4

Consolidated

-11

+13

Customer

GroupsMarkets

2,062.2

Impact on Gross Profits

+ JPY 2B

Banking account revenue

FX, derivatives, other + 4

-15

Before COVID-19

2,060.2

(JPY B)

Solution Business, other

Trading account revenue

+ 18

- 5

135.0

COVID-19 impact

(Including additional

reserves of JPY 80.4 B

from a forward-looking

perspective)

Mar-20Jan-20Dec-19 Feb-20

1

BK + TB

54.753.753.653.8

Impairment loss on cross-share holdingsAdditional reserves

2

Q4 Q4

10

1. Net Gains (Losses) related to ETFs are included in GMC. 2. Gross Profits + Net Gains (Losses) related to ETFs – G&A Expenses (Excl. Non-recurring Losses and others) + Equity in Income from

Investments in Affiliates – Amortization of Goodwill and others items.

3. Calculated by dividing Net Income by internal risk capital (taking account of not only regulatory risk weighted assets but also other factors such as interest rate risk in the banking account).

4. New management accounting rules were applied in FY19. Figures for YoY are recalculated based on the new rules.

Gross ProfitsG&A Expenses

(excl. Non-recurring Losses

and others)

Net Business Profits Net Income ROE

FY19 YoY FY19 YoY FY19 YoY FY19 YoY FY19

673.6 -32.4 -668.4 45.2 16.5 6.5 9.1 333.4 0.7%

462.4 -11.0 -215.0 -9.4 248.9 -19.3 197.8 -121.6 9.7%

417.8 17.5 -249.0 -11.2 178.7 9.5 110.5 22.4 8.4%

410.1 217.8 -208.9 -1.4 198.9 216.3 137.1 156.3 9.5%

48.4 -1.2 -29.0 -1.7 12.9 -2.7 6.1 -58.5 5.3%

Financial Results by In-house Company

Retail & Business Banking

Corporate & Institutional

Global Corporate

Global Markets

Asset Management

1

4 4 4

311, 2

4

Group aggregate, management accounting(JPY B)

11

201.4 203.0172.2 169.3

FY19 Plan FY19 Results

177.8207.2

40.0 39.6


49.0 48.429.1 29.0


406.1 417.8

254.3 249.0


470.8462.4

219.7 215.0


679.1 673.6677.7 668.4


G&A Expenses (excluding Non-Recurring Losses) Net Business Profits

Net Business Profits by In-house Company

Retail & Business Banking Corporate & Institutional Global Corporate

Global Markets (Banking) Global Markets (S&T) Asset Management

160.8 178.7

Gross Profits

1. Net Gains (Losses) related to ETFs are included in GMC (Banking).

2. Gross Business Profits + Net Gains (Losses) related to ETFs - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates - Amortization of Goodwill and other items.

3. Revised Plan announced in November 2019. 4. Including XVA related gains and losses.

1, 21

Group aggregate, management accounting

8.8

16.5

252.9 248.9

167.6

137.8

29.131.3

13.2 12.9

3 3 3

3 3 3

4

4

(JPY B)

12

73.1 66.1

13.1 9.1

88.0 92.4

99.9 98.8

126.1114.1

400.0380.5

FY18 FY19

(JPY B)FY18 FY19 YoY

Gross Profits 1 705.9 673.6 -32.4

Interest Income 2 306.1 293.3 -12.8

Non-interest Income 3 400.0 380.5 -19.5

G&A Expenses (Excl. Non-recurring losses)

4 -713.6 -668.4 45.2

Equity in Income from

Investments in Affiliates5 18.1 11.8 -6.4

Net Business Profits 6 10.1 16.5 6.5

Credit-related Costs 7 -7.0 -37.2 -30.2

Net Gains (Losses) related

to Stocks and others8 20.1 17.2 -3.0

Others 9 -347.5 12.6 360.1

Net Income 10 -324.3 9.1 333.4

Internal risk capital

(avg. balance)11 1,294.3 1,291.9 -2.4

ROE 12 -25.1% 0.7% 25.8%

Gross Profits ROE 13 54.5% 52.1% -2.4%

Expense ratio 14 101.1% 99.2% -1.9%

199.2 198.9

97.6 93.1

147.0 120.9

269.8255.5

713.6668.4

FY18 FY19

(JPY B)

(JPY T) (JPY B)

G&A Expenses

Retail & Business Banking Company

Loan Balance(Period-End Balance)/ Spread Non-interest Income

League Table

FY19FY18

IPO 2nd3rd

Business Succession 1st-5

1. Loan Balance: 2 Banks, Spread: BK management accounting. 2. Small and medium-sized enterprises. 3. BK investment trusts, annuities + SC individual segment, PB segment.

4. Including fee related to investment banking business, and real estate brokerage. 5. The Small and Medium Enterprise Agency, Corporate Business Succession tax system Special Succession Plan

Establishment Support Ranking, Source: The Small and Medium Enterprise Agency. 6. No. of IPO Bookrunner, Source: CAPITAL EYE.

1

6

Settlement &

Foreign Exchange

Individual

Asset Formation

Solution

Businesses

Others

3

FM cost

System

Expenses

Personnel

Expenses

Others

4

Derivatives

SME IndividualSP2


10.4 10.1 9.8 9.6 9.4 9.2

21.8 22.5 22.6 23.5 23.9 24.6

32.2 32.6 32.4 33.1 33.3 33.8

Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20

0.64% 0.62% 0.60% 0.58%0.55% 0.54%

13

18.8 18.9 20.1 21.0 21.6 22.0


0.48% 0.48% 0.48% 0.47% 0.49% 0.49%

38.0 41.7

17.5 15.2

79.8 66.8

147.5 153.4

FY18 FY19

50.2 50.9

26.3 25.1

50.5 61.1

78.677.9

205.6215.0

FY18 FY19

FM cost

System

Expenses

Personnel

Expenses

Others

Solution

Businesses

(JPY B)

(JPY T) (JPY B)

FY18 FY19 YoY

Gross Profits 1 473.4 462.4 -11.0

Interest Income 2 191.1 185.8 -5.3

Non-interest Income 3 282.7 277.1 -5.6

G&A Expenses(Excl. Non-recurring losses)

4 -205.6 -215.0 -9.4


Investments in Affiliates5 0.9 2.0 1.1

Net Business Profits 6 268.2 248.9 -19.3

Credit-related Costs 7 31.4 -66.9 -98.3



Others 9 -145.7 -82.8 62.9

Net Income 10 319.4 197.8 -121.6


(avg. balance)11 2,072.3 2,032.3 -40.0

ROE 12 15.4% 9.7% -5.7%


Expense ratio 14 43.4% 46.5% 3.1%

282.7 277.1

Corporate & Institutional Company

Non-interest Income 1

G&A Expenses League Table

FY19FY18

DCM 1st1st

ECM 4th4th

M&A3rd6th

3

4

5

2nd2nd

Amount

No.of

deals

1. Loan Balance: 2 Banks, Spread: BK management accounting. 2. Including fee related to investment banking business, and real estate related.

3. Straight bonds, Investment corporation bonds, Zaito institution bonds, Municipal bonds (Lead manager method only), Samurai bonds and Preferred securities (excluding own debt).

Source: I-N Information Systems. 4. Equity Underwriting amount.Source: Refinitive. 5. Any Japanese involvement announced (excluding real estate deals) Source: Refinitive

SPLarge Corporations

and other

2


Settlement &

Foreign Exchange

Others

Derivatives

(JPY B)Loan Balance(Period-End Balance)/ Spread

14

Loan Balance(Period-End Balance)/ Spread

49.0 46.2

80.9 83.2

71.9 81.6

36.1 38.1

237.9 249.0

FY18 FY19

10.2 9.5

81.7 84.9

81.8 94.6

36.837.3

210.5226.3

FY18 FY19

98.2 102.0 119.0 112.4 117.3 117.0

67.4 69.169.8 75.7 79.7 99.3

38.1 44.246.3 52.9

56.262.5


0.89% 0.90%0.85%

0.80% 0.81% 0.82%

(JPY B)

(JPY B)

FY18 FY19 YoY

Gross Profits 1 400.2 417.8 17.5

Interest Income 2 164.1 170.8 6.8

Non-interest Income 3 210.5 226.3 15.8

G&A Expenses(Excl. Non-recurring losses)

4 -237.9 -249.0 -11.2



Net Business Profits 6 169.2 178.7 9.5

Credit-related Costs 7 -48.4 -28.3 20.1



Others 9 -42.2 -47.0 -4.8

Net Income 10 88.1 110.5 22.4


(avg. balance)11 1,229.9 1,321.9 92.0

ROE 12 7.2% 8.4% 1.2%


Expense ratio 14 59.4% 59.6% +0.2%

League Table

Global Corporate Company

Non-interest Income

FY19

DCMIn the

Americas

8th

LCMIn the

Americas

7th

4th2nd

3rd2nd

3

4

1. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia, Russia, Brazil and Mexico). Spread: BK management accounting

2. Figures including past figures are recalculated based on the FY19 planned rate in USD. 3. Bonds issued by investment grade corporations in the Americas, bookrunner basis. Source: Dealogic

4. Loans issued by investment grade corporations in the Americas, bookrunner basis. Source: Refinitive

1, 2

G&A Expenses

10th

7th

Excl. US

Banks

（USD B）

AsiaEMEASP Americas

FY18

EMEA

Americas

Other

Asia


EMEA

Americas

Other

Asia

Excl. US

Banks

(JPY B)

15

FY18 FY19 YoY

Gross Profits 1 192.4 410.1 217.8

Banking 2 10.3 207.2 196.9

S&T 3 182.1 203.0 20.9


4 -207.4 -208.9 -1.4


Investments in Affiliates5 - - -

Net Business Profits 6 -17.4 198.9 216.3

Credit-related Costs 7 -0.6 0.8 1.5


to Stocks and others8 - - -

Others 9 -1.2 -62.7 -61.5

Net Income 10 -19.2 137.1 156.3


(avg. balance)11 1,529.1 1,447.3 -81.8

ROE 12 - 9.5% -

Gross Profits ROE 13 12.6% 28.3% +15.8%

Expense ratio 14 107.8% 50.9% -56.9%


1,057.41,272.7

300.9

364.0

182.1203.0

170.1 169.3

12.031.3

10.3

207.2

37.7 39.6

121.9

-27.3

167.6

Net IncomeExpense5

(JPY B)(JPY B)

Sales & Trading


Global Markets Company

Banking

Reference: Unrealized Gains (Losses)

(JPY B)Period-end Balance(JPY T)

Banking S&T

1. Including one-time losses of JPY 149.2B. 2. Including XVA related gains and losses. 3. Gross Profits + Net Gains (Losses) related to ETFs –G&A Expenses (excluding Non-Recurring Losses) ＋Equity in Income from Investments in Affiliates –Amortization of Goodwill and other items. 4. Including Net Gains (Losses) related to ETF. 5. Excluding Non-recurring Losses and others 6. Preliminary figures.

7. Changes in value to be recorded directly to Net Assets after tax and other necessary adjustments. Calculated based on the quoted market price if available, or other reasonable value, at the respective period end.

8. Excluding transactions such as hedge transactions calculated in management accounting in GMC.

2 Banks

2

1

Mar-19 Mar-20

1.64

1.36

1

7, 8

3 Gross Profits

FY18 FY19

Non-JPY Bonds

JGBs

ETF, Funds and

others

178.5181.4

-65.3

-127.7

-49.95.3

3FY18 FY19

FY18 FY19

Includes one-

time losses of

JPY 149.2B

159.5

6

121.3 0.9

Expense5

Gross Profits3

Net Income

2

2

(JPY B)

16

1.23.4

34.7 35.3

11.5

27.2

11.8

29.0

15.612.9

Mar-18 Mar-19 Mar-20

Publicly offered

investment trusts

Number of iDeCo participantsInvestment Trust Net Assets and Share

Gross Profits

FY18 FY19

Investment

Trusts

Pension

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

79

120

173

8.7 7.8

7.0 7.3

36.0 34.4

10.2%

10.8%10.4%

7.3%7.6%

7.8%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

Asset Management Company

FY18 FY19 YoY

Gross Profits 1 49.6 48.4 -1.2

Investment Trusts 2 34.7 35.3 0.8

Pension 3 11.5 11.8 0.3


4 -27.2 -29.0 -1.7



Net Business Profits 6 15.6 12.9 -2.7

Credit-related Costs 7 - - -



Others 9 -33.8 -7.9 25.9

Net Income 10 64.6 6.1 -58.5


(avg. balance)11 139.2 115.9 -23.3

ROE 12 46.4% 5.3% -41.1%

Gross Profits ROE 13 35.6% 41.7% 6.1%

Expense ratio 14 54.9% 59.9% 5.0%

Publicly offered

investment trustsPrivate Fund

investment trusts

1. Excluding Non-Recurring Losses and others. 2. Gross Business Profits + Net Gains (Losses) related to ETFs - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in

Affiliates - Amortization of Goodwill and other items. 3. The Investment Trusts Association data 4. Excluding ETF 5. Individual-type defined contribution pension plan

Pension/AM

Mar-19 Mar-20

4


3

BK

Others

Gross ProfitsBalance of publicly offered and

privately placed investment trusts

49.551.7

3rd in

industry

2nd in

industry

AM-One

AM-One

48.449.6

Net Income Expenses1 2

(JPY B) (JPY T)

(K)Private Fund

investment trusts

Group aggregate, management accounting(JPY B)

5

17

YoY

FG BK + TB SC FG BK + TB SC

Consolidated Gross Profits 1 2,062.2 1,696.2 265.4 249.4 255.3 3.6

Net Interest Income 2 733.5 732.7 -4.9 -28.9 -35.2 5.1

3 677.8 533.7 111.4 12.2 20.8 0.6

4 650.8 429.8 158.9 266.1 269.7 -2.1

Net Gains (Losses) related to Bonds 5 114.2 114.2 0.0 223.6 224.1 -0.5

6 -1,378.3 -1,039.7 -239.3 52.4 39.9 6.5

7 -1,424.6 -1,091.0 -237.5 29.4 14.8 7.2

8 661.9 624.5 27.8 268.5 260.9 10.3

Consolidated Net Business Profits

from core business operations (8-5)9 547.7 510.3 27.8 44.9 36.8 10.8

Credit-related Costs 10 -171.7 -172.6 1.0 -152.1 -153.6 1.5

11 137.1 131.0 3.5 -137.6 -47.5 -6.1

12 30.3 30.8 -0.1 -20.8 -18.7 -0.4

Other 13 -41.7 -46.0 -0.9 32.4 34.1 -0.6

Ordinary Profits 14 637.8 599.6 29.7 23.7 109.4 4.5

Net Extraordinary Gains (Losses) 15 -19.1 -17.3 -1.6 478.6 476.9 12.2

Income before Income Taxes 16 618.7 582.3 28.1 502.4 586.4 16.7

Income Taxes 17 -161.4 -149.1 -6.1 -163.9 -189.2 1.8

18 -8.6 -4.4 -0.5 13.5 13.9 -1.6

19 448.5 428.7 21.4 352.0 411.0 17.0

Equity in Income from Investments in Affiliates

Profit Attributable to Non-controlling Interests

Profit Attributable to Owners of Parent

FY2019

Net Fee and Commission Income + Fiduciary Income

Net Trading Income + Net Other Operating Income

General and Administrative Expenses



G&A Expenses (excluding Non-Recurring

Losses and others)

1. BK Consolidated + TB Consolidated. 2. SC Consolidated.

Overview of Income Statement

1 12 2

(JPY B)

18

FY19 YoY FY19 YoY FY19 YoY

Consolidated Gross Profits 1 1,529.5 242.5 166.7 12.8 Operating Revenues 20 381.7 0.2

Net Interest Income 2 707.4 -33.4 25.2 -1.8 Commissions 21 161.6 -6.3

3 406.6 16.8 127.0 4.0 Net Gain on Trading 22 108.4 7.1

4 415.5 259.1 14.3 10.5 23 3.2 -4.4

Net Gains (Losses) related to Bonds 5 101.6 213.6 12.5 10.4 24 108.3 3.9

6 -939.2 38.7 -100.4 1.1 Interest Expenses 25 99.6 2.0

7 -987.6 16.7 -103.3 -1.9 Net Operating Revenues 26 282.0 -1.8

8 566.7 251.1 57.8 9.8 27 252.8 -9.8


from core business operations (8-5)9 465.0 37.4 45.2 -0.6 Operating Income 28 29.2 8.0

Credit-related Costs 10 -171.4 -152.9 -1.2 -0.7 Ordinary Income 29 31.2 8.5

11 126.6 -31.6 4.4 -15.9 Extraordinary Gain (Loss) 30 -2.0 9.3

12 30.7 -18.7 0.0 -0.0 31 29.1 17.8

Other 13 -35.8 35.6 -10.2 -1.4 Income Taxes 32 6.6 -1.3

Ordinary Profits 14 540.4 113.6 59.2 -4.2 33 1.0 2.1

Net Extraordinary Gains (Losses) 15 -17.5 474.5 0.2 2.3 34 21.4 17.0

Income before Income Taxes 16 522.8 588.2 59.4 -1.8

Income Taxes 17 -131.8 -185.2 -17.2 -3.9

18 -3.7 14.1 -0.7 -0.2

19 387.2 417.1 41.5 -6.0





BK Consolidated TB Consolidated SC Consolidated

Net Fee and Commission Income + Fiduciary Income

Net Trading Income + Net Other Operating Income Net Gain on Operating Investment Securities

Interest and Div idend Income


Selling, General Administrative Expenses

Income before Income Taxes



Equity in Income from Investments in Affiliates

G&A Expenses (excluding Non-Recurring

Losses and others)

Overview of Income Statement (Subsidiaries)

(JPY B)

19

Increase in Non-JPY Loans

Increase in Non-JPY Bonds

Increase in derivatives

1. Management accounting basis, rounded figures. 2. Negotiable Certificates of Deposit. 3. Customer Deposits. 4. 2 Banks. 5. FY19 Q4 result, ( ) represent QoQ compared to FY19 Q3.

Leverage Ratio: 4.08% (-0.34%)

JPY 41T

o/w Bank of Japan Current Account Balance

Cash and Due from Banks

JPY 2.7T

JPY 13.0T

JPY 13.0T

Japanese Stocks

Non-JPY Bonds

JGBs

JPY 34T(+JPY 5.1T)

JPY 8T(-JPY 0.5T)

JPY 61T(+JPY 7.5T)

USD 228.9B

JPY 117T

JPY 51T

USD 307.8B

JPY

Non-JPY

Other Assets

Net Assets

Securities

Other Liabilities

JPY

Non-JPY

1

1, 3

JPY 144T(+JPY 6.8T)

Loans Deposits/NCDs

Liquidity Coverage Ratio5:

137.3% (-6.8%)

o/w individual deposits:

approx. JPY 43T

JPY 105T(BK, Japan)

Liquid Deposits

TimeDeposits

NCDs2

Fixed

Prime-rate linked

JPY 49T(BK, Japan)

Loans to individuals,and other

Consolidated, ( ) represent changes from Mar-19

Risk Weighted Assets: JPY 62T （+JPY 4.2T）

Total Assets: JPY 214T (+JPY 13.8T）

JPY DepositsJPY Loans

Overview of Balance Sheet (Mar-20)

4

+JPY 7.6T

Reference: impact of COVID-191

BK

BK

SC

Total Assets

Floating-rate linked

2

JPY 83T(+JPY 5.0T)

1

1

JPY 96T(+JPY 3.7T)

JPY 31T

+JPY 1.7T

+JPY 2.4T

+JPY 3.6T

1 1

20

-9% -10%

-7% -10%-2%

-4%

-10% -9%

-31%

-13%

1% 4% 5%

-22%

3%

22%

273.2 268.0 253.7 241.1 249.4 230.9 225.2 210.4

104.3 103.6105.7 107.9 111.1

84.5 114.2 102.9

436.3 431.4407.4 399.9 408.1

354.2376.6 356.9

FY16 H1 FY16 H2 FY17 H1 FY17 H2 FY18 H1 FY18 H2 FY19 H1 FY19 H2

Difference Between

Consolidated and 2 Banks

(JPY B)

International Operations

Domestic Operations

2

2

International YoY Increase/Decrease 2

Domestic YoY Increase/Decrease 2

JPY/USD 101.12 112.20 112.74 106.27 113.58 111.01 107.96 108.83

Interest on Loans and Bills Discounted 442.4 491.6 494.7 504.6 604.0 649.8 646.7 595.5

Interest on Deposits -92.5 -131.0 -152.7 -155.2 -217.9 -262.6 -261.3 -221.4

Interest on Dividends on Securities 129.5 150.3 142.6 140.1 163.5 139.2 138.3 128.5

Interest on Repos -11.5 -18.2 -40.3 -50.6 -61.1 -65.9 -46.4 -40.9

Interest on Due from Banks 34.6 42.6 54.0 65.8 57.5 66.0 56.8 48.3

Others -66.2 -103.9 -90.9 -104.7 -137.9 -172.1 -157.4 -153.0

Net Interest Income (Consolidated) 436.3 431.4 407.4 399.9 408.1 354.2 376.6 356.9

1

Consolidated Gross Profits (Net Interest Income)

1. Foreign exchange rate (TTM) at the respective period end. 2. 2 Banks. 3. Excluding Interest on Negotiable Certificates of Deposit.

4. Receivables under Resale Agreements + Guarantee Deposits Paid under Securities Borrowing Transactions - Payables under Repurchase Agreements Guarantee Deposits Received

under Securities Lending Transactions.

4

3

21

Domestic Operations

104.3 103.6 105.7 107.9 111.184.5

114.2 102.9

273.2 268.0253.7

241.1249.4

230.9 225.2210.4

1. Interest/ expense of Receivables under Resale Agreements + Guarantee Deposits Paid under Securities Borrowing Transactions - Payables under Repurchase Agreements - Guarantee Deposits Received

under Securities Lending Transactions. 2. Excluding Interest on Negotiable Certificates of Deposit. 3. Including Interest on Due from Banks

Deposits

Repos

Others

Securities

Loans

(JPY B)(JPY B)

Loans

Deposits

Securities

2 Banks2 Banks

Others

International Operations

Net Interest Income (2 Banks)

H1 H2 H1 H2 H1 H2 H1 H2

Loans 218.0 206.9 200.7 197.4 195.5 192.7 194.9 193.6

Deposits -4.8 -3.1 -3.0 -3.0 -2.3 -1.9 -1.8 -1.8

Securities 51.0 55.0 50.2 42.4 59.4 49.5 45.0 36.8

Repos 0.5 1.3 0.2 0.3 1.1 -0.2 -1.3 -1.9

Others 8.5 7.8 5.6 4.0 -4.3 -9.1 -11.4 -16.1

H1 H2 H1 H2 H1 H2 H1 H2

Loans 183.0 238.6 250.4 258.5 359.6 405.3 400.6 348.9

Deposits -75.3 -112.2 -134.1 -136.0 -200.6 -245.2 -244.2 -203.6

Securities 75.0 88.3 91.0 94.8 99.4 87.0 96.2 90.6

Repos -17.8 -24.9 -42.9 -50.8 -59.0 -60.7 -44.3 -41.9

Others -60.5 -86.1 -58.5 -58.6 -88.2 -101.8 -94.0 -91.2

FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19

Repos1

2

1

Net Interest Income Net Interest Income

3 3

2

22

55.1 58.5

610.4 619.2

FY18 FY19

143.7 149.9

240.9

500.9

FY18 FY19

SC : 128.5 (+4.3)

Domestic 284.5 (+1.0)

SC : 187.5 (+7.3)

Market operations

2 Banks: 276.0 (+240.4)

o/w Net Gains (Losses)

related to Bonds: 114.7 (+220.3)

o/w Derivatives + Foreign

Exchange : 161.8 (+20.7)

4, 5

Others

2 Banks: 28.7 (+15.4)

SC : 35.0 (-7.8)

AM One: 64.9 (+0.5)

Other: 21.2 (-2.0)

Fiduciary Income

TB: 59.1 (+4.1)

TCSB: - (-6.2)

Consolidation adjustments: -0.5 (+5.5)

1. Including Mizuho Securities USA LLC 2. Including consolidation adjustments. 3. After consolidation adjustments. 4. After consolidation adjustments, includes subsidiaries. 5. Net Trading Income - SC

Underwriting and Selling Fees + Net Gains (Losses) related to Bonds + Net Gains (Losses) on Foreign Exchange Transactions 6. Net Gains (Losses) on Derivatives Trading Transactions + Net Gains (Losses) on

Foreign Exchange Transactions.

TB Subsidiaries 38.9 (+5.5)

2 Banks: 420.7 (+3.5)

Net Fee and Commission Income

International 136.2 (+2.4)

Other : 69.9 (+0.8)

BK Subsidiaries 11.6 (+2.0)

Other 19.3 (-6.7)

Consolidated, Figures in ( ) represent YoY(JPY B)Consolidated, Figures in ( ) represent YoY

Net Fee and Commission Income/Fiduciary Income Net Trading Income/Net Other Operating Income

650.8

384.6

Consolidated Gross Profits (excluding Net Interest Income)

(JPY B)

677.8665.5

(+8.8)

(+3.4)

619.2

58.5

(+259.9)

(+6.1)

500.9

149.94

1

2

6

1

1

Other: 37.2 (+12.2) 3

3

23

54.0 54.8 53.6 53.8 54.6 55.8 56.5 57.4

17.8 19.1 19.2 19.4 22.5 22.6 23.4

25.9

71.973.9 72.8 73.3

77.1 78.4 79.9 83.3

Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20

1. Excluding loans to FG. Banking account. 2. Foreign exchange rate (TTM) at the respective period ends.

JPY/USD

2 BanksLoan Balance (Period-End Balance)

101.12 112.20 112.74 106.27 113.58 111.01 107.96 108.832

Loans

Outside

Japan

In Japan

(JPY T)

24

(JPY T)

0.94%0.90%

0.86% 0.85% 0.83%0.80% 0.78% 0.77%

0.93%0.89%

0.86% 0.84% 0.82% 0.80% 0.78% 0.76%

0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

H1 H2 H1 H2 H1 H2 H1 H2

Returns on Loans and Bills Discounted ･･･ a

Loans and Deposit Rate Margin ･･･ a - b

Costs of Deposits ･･･ b

0.70%0.66%

0.64%0.62%

0.60%0.58%

0.55% 0.54%

0.51% 0.50%0.48% 0.48% 0.48% 0.47% 0.49% 0.49%

H1 H2 H1 H2 H1 H2 H1 H2

Loans to Middle Market Firms & SMEs

Loans to Large Corporate Banking Clients

H1 H2

FY16

H1 H2

FY19

H1 H2

FY17

H1 H2

FY18

11.0 10.7 10.4 10.1 9.8 9.6 9.4 9.2

20.9 21.7 21.8 22.5 22.6 23.5 23.9 24.6

18.1 19.0 18.8 18.9 20.1 21.0 21.6 22.0

3.9 3.2 2.4 2.1 1.8 1.6 1.4 1.4 54.0 54.8

53.6 53.8 54.6 55.8 56.5 57.4


BK, management accounting

1. Excluding loans to FG. Banking account. 2. Calculated by deducting “Housing and Consumer Loans” from “Loans to SMEs and Individual Customers”.

3. Housing and Consumer Loans. 4. Domestic Operations, excluding loans to financial institutions (including FG) and the Japanese Government & other public sector.

Japanese

Gov. & other

public sector

Large

corporations

and other

entities

Individuals

SMEs 2

3

2 Banks Loan and Deposit Rate Margin 2 Banks

Loan Spread

Q3 0.76%

Q4 0.76%Q1 0.78%

Q2 0.77%

Avg.

Balance53.2 54.4 53.6 53.5 53.8 55.0 56.0 56.4

Loans in Japan

Loan Balance (Period-end Balance)41

FY16 FY17 FY18 FY19

FY16 FY17 FY18 FY19

25

1.70%1.83%

2.03%2.24%

2.67%2.91% 2.87%

2.46%

0.96% 0.97%

0.95% 1.03%

0.98% 0.89% 0.90% 0.91%

0.73%0.86%

1.08%1.21%

1.68%

2.01% 1.97%

1.55%

H1 H2 H1 H2 H1 H2 H1 H2

Returns on Loans and Bills Discounted ･･･ aLoans and Deposit Rate Margin ･･･ a - bCosts of Deposits ･･･ b

0.91%0.89% 0.89% 0.90%

0.85%

0.80% 0.81% 0.82%

H1 H2 H1 H2 H1 H2 H1 H2

Loan Spread

90.8 91.8 98.2 102.0119.0 112.4 117.3 117.0

75.4 70.9 67.4 69.1

69.8 75.779.7

99.3

38.6 40.4 38.144.2

46.3 52.956.2

62.5

204.8 203.1 203.7215.3

235.1240.9

253.2

278.8


Q3 0.89%

Q4 0.92%

Q1 0.89%

Q2 0.91%

Avg.

Balance203.9 209.0 207.0 213.4 227.4 243.8 248.4 259.8

H1 H2

FY19

H1 H2

FY16

H1 H2

FY17

H1 H2

FY18

Loan and Deposit Rate Margin


BK, Overseas

1. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia, Russia, Brazil and Mexico).

2. Figures including past figures are calculated based on the FY19 planned rate in USD.

(USD B)

Loan Balance (Period-end Balance)

EMEA

Americas

Asia

Loans outside Japan

1, 2


1, 2

FY16 FY17 FY18 FY19

FY16 FY17 FY18 FY19

26

235.9 245.6 272.4307.8

175.7 177.6 200.4 228.9

74% 72% 74% 74%

Mar-17 Mar-18 Mar-19 Mar-20

Non-JPY Loans

Non-JPY Customer Deposits

Proportion of Deposits to Loan

0

20

40

60

80

49.947.6

117.8120.3

79.1

307.8

228.9

Assets Funding1. Including the banking subsidiaries in China, the US, the Netherlands, Indonesia, etc.

2. Figures including past figures are calculated based on the FY19 planned rate in USD. 3. Including Non-JPY loans/customer deposits in Japan.

Medium and LT Funding

Market Operations

Securities

(USD B)

• Repos

• Interbank

• Central Banks,

other

• Corporate Bonds

• Currency Swaps,

other

Non-JPY Assets and Funding (Mar-20)

Reference: 5 Year Currency Swap Rates (USD/JPY)

Trends in Non-JPY Loans and Deposits

Source: Bloomberg

(bps)

475.7

CD/CP

2, 3

Non-JPY Funding

(USD B)


BK1, management accounting BK1, management accounting

Loans Customer

Deposits

Other

2, 3

475.7

27

20/3末 24/3末

In

Japan

Loan Balance (In-house company management accounting basis)

20/3末 24/3末

Loan Spread

Reference: Outlook of Loans

Increase temporarily due to the increase in demand

Increase in line with the5-Year Business Plan

* As of the announcement of 5-Year Business Plan (Vs. Mar-19)

FY18 vs FY21 FY21 vs FY23

EMEA

Americas

Asia

FY18 vs FY21 FY21 vs FY23

Large

Corporations

SMEs

Individuals

CAGR4%

Same level

Individuals

Corporates

Asia

Americas

EMEA

(In-house company

management accounting basis)

Outside

Japan

Increase temporarily due to the increase in demand

*

*

*

Mar-20 Mar-24

Mar-20 Mar-24

28

48 44 43

205 200 193

190 180 173

166 178 189

386 405 386

995 1,007 984

FY17 FY18 FY19

FY18 RBC CIC GCC AMC FY19

1. Recalculated past figures based on FY19 planned rate and other factors such as expansion and refinement of range of consolidated subsidiaries, under management accounting.

The original figures before the recalculation were FY17: JPY 984B and FY18: JPY 996B. 2. Excluding the effects of the unconsolidation of TCSB in Oct.18.

Investment Trusts:

Individual Annuities:

Syndicated Loans:

Investment Banking:

Securities-related Fees:

Solutions Business:

(JPY B)

Group aggregate, management accounting, rounded figuresNon-interest Income

Settlement & Foreign Exchange:

Settlement:

Foreign Exchange:

Other：

Non-interest Income from Customer Groups

Banking in Japan

EMEA：

Americas：

Asia：

Real Estate：

Pension/Asset Management:

In Japan：

Outside Japan：

Reference: Breakdown by In-House Company

1,007

984

Trust /Asset Management related

Securities

RBC ： Sluggish profits of Investment Trusts and Annuities

CIC ： Decreased mainly due to the lack of large revenue in foreign exchange recorded in FY18

GCC ： Increase in DCM in the Americas, Transaction banking in Asia (FX)

Other ： Unconsolidation of TCSB -110 and other

Other

-20

-6

+1 -14+16

22 (-9)11 (-2)

11 (-6)

161 (-9)

85 (+3)

76 (-13)

76 (-0)

31 (+1)

66 (+7)

82 (+3)

64 (+5)

64 (+0)

(168) (169)2

2

Impact of COVID-19 Total : Approx. -JPY 11B

1

-23

(-12) 2

Banking outside Japan

Investment Trust & Annuities:

37 (+5)

156 (-12)

32 (-6)

62 (+15)

21 (+3)

127 (-1)

Figures in ( ) represent YoY

29

Impact of one-time losses :(-34.3)

General and Administrative Expenses (Excl. Non-recurring losses)

71.8 65.6 64.8

703.4 700.8 688.0

682.7 687.5 671.7

FY17 FY18 FY19

FY18 RBC CIC GCC GMC AMC Other FY19

Consolidated(JPY B)

In Japan: 564.8 (-16.2)

Outside Japan: 123.2 (+3.4)

Amortization of the New Core Banking System: (+24.5)

Reference

No. of employees:57,264 (-1,868)

In addition,

avg. no. of temporary

employees : 17,010 (-697)


1

2

-29.4

1,458.11,424.6

1,454.1

General and

Administrative

Expenses1,488.9 1,430.8 1,378.3

o/w Non-recurringLosses 30.8 -23.3 -46.2

Amortization of

Goodwill and other

items13.8 13.5 13.2

Reference:


3

1,436.9

1,402.8

4

4

-45.2

+9.4

+11.2 +1.4+1.7 -12.7

RBC ： Impact of recording one-time losses in FY18, reduction in the no. of branches,personnel reduction and others

CIC ： Amortization of new core banking system

GCC ： Personnel expenses outside Japan

Other ： Unconsolidation of TCSB and others

Personnel

Non-Personnel

Miscellaneous

Taxes

Figures in ( ) represent YoY

1. Excluding the number of agency staff. 2. The decrease of depreciation cost due to the impairment losses on fixed assets recorded in FY18. 3. G&A Expenses (Excl. Non-recurring Losses and others) –

Amortization of Goodwill and other items. 4. Difference between financial and management accounting is due to the range of consolidated subsidiaries calculated and adjustments of intercompany

transactions and other.

(JPY B)

Breakdown by In-house Company

30

Mar-18 Mar-19 Dec-19 Mar-20Mar-18 Mar-19 Dec-19 Mar-20

1. Other Securities which have readily determinable fair values. 2 UST/GSE Bonds. 3. 2 Banks. 4. Hedging transactions aiming to fix unrealized gains on Japanese stocks. 5. Changes in value to be recorded

directly to Net Assets after tax and other necessary adjustments. Calculated based on the quoted market price if available, or other reasonable value, at the respective period end.

Foreign

Bonds

Japanese

Stocks

Japanese

Bonds

(JPY T) (JPY B)

Consolidated

Acquisition cost basis

Securities Portfolio

Balance of Other Securities Unrealized Gains/Losses on Other Securities

29.6

26.1

1 5

32.2

26.8

Consolidated1,925.9

1,651.8

Japanese Stocks 1.5 1.4 1.3 1.2

Japanese Bonds 16.5 14.7 13.8 15.7

o/w JGB 13.3 11.8 10.8 12.6

Foreign Bonds 8.4 7.3 8.7 12.5o/w Debt Securitiesissued in US 4.2 2.1 4.5 8.0

Other 3.0 2.5 2.8 2.7

o/w bear funds - - 0.9 0.8

Japanese Stocks 1,984.2 1,687.6 1,706.9 1,071.5

Japanese Bonds 5.4 5.2 -47.9 -54.1

o/w JGB 0.6 5.9 -39.3 -44.0

Foreign Bonds -161.2 21.7 -23.0 200.9o/w Debt Securitiesissued in US -161.2 5.1 -10.6 234.4

Other 97.5 -62.7 -69.3 -40.4

o/w bear funds - - -83.2 86.2

1,566.5

1,177.9

2, 3

4

Japanese

Bonds

Foreign

Bonds

Other

Japanese

Stocks

Other

2, 3

4

31

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

19/3 19/6 19/9 19/12 20/3Jun-19 Sep-19 Mar-20Mar-19 Dec-19

-20.7 -109.3

96.7 -6.6 24.1

FY17 FY18 FY19 H1 FY19 Q3 FY19 Q4

1. Other Securities which have readily determinable fair values. 2. Including bonds with remaining period of one year or less. 3. Changes in value to be recorded directly to Net Assets after tax and other necessary

adjustments. Calculated based on the quoted market price if available, or other reasonable value, at the respective period end. 4. Excluding floating-rate notes. 5. UST/GSE Bonds.

Reference: Interest Rate Trends in and outside Japan

4.2 2.1

4.5

8.0 1.1

2.0 0.7

1.0

0.3 0.5

0.6

0.6

2.4 2.4

2.5

2.4

8.1 7.1

8.5

12.1

Mar-18 Mar-19 Dec-19 Mar-20

9.2

5.8 7.1 7.6

0.6

0.60.3 0.3

3.4

5.4 3.34.6


2 Banks


JGB Portfolio

Reference: Avg. remaining period (yrs)

(JPY T)

Unrealized

Gains (Losses) (JPY B)

(Includes one-

time losses of

JPY 149.2B) Medium & Long-term

Bonds

Floating-rate

Notes

Treasury

Discount Bills

(JPY B) (JPY T)

Consolidated 2 Banks


Reference: Avg. remaining period (yrs)

Foreign Bond Portfolio

Net Gains (Losses) related to Bonds

Securities Portfolio (Bonds)

0.6 5.9 -39.3

(%)

1

1

High 2.59%

Low 0.54%

High 0.08%Low -0.29%

-160.2 -24.021.1

13.311.8

3

12.6

-44.0

199.6

10.8

2.5 2.1 2.2 2.4

3.4 3.2 3.2 2.6

FY19 114.2

Debt Securities issued in US

Debt Securities issued

in Europe

CLO non-JPY denominated

Other

5

JGB (10y)

2

UST (10y)

Unrealized

Gains (Losses) (JPY B)3

32

Net Gains (Losses) related to Stocks Japanese Stock Portfolio

197.0

265.6

65.434.1

68.6

80.1

14.9

-7.9 13.1

5.3

-5.1 -5.7 -10.0

2.6

-34.2

272.0 274.8

47.4 49.9 39.7

FY17 FY18 FY19 H1 FY19 Q3 FY19 Q4

14,000

16,000

18,000

20,000

22,000

24,000

19/3 19/6 19/9 19/12 20/3

JPY

21,756

JPY

23,657 JPY

18,917

Mar-19 Jun-19 Sep-19 Dec-19 Mar-20

1,564.8

1,419.8 1,352.0

1,272.0


Net Gains

related to

ETFs

and others

Target JPY 300B

Basic

Policy

Reduction

Plan

(JPY B)(JPY B)

Consolidated

Acquisition cost basisConsolidated

Unrealized

Gains (Losses)

Securities Portfolio (Stocks)

1,687.64

1. Net Gains related to ETFs (2 Banks) + Net Gain on Operating Investment Securities (SC Consolidated). 2. Net Gains (Losses) on sale of stocks + Gains (Losses) on Derivatives. 3. Other Securities which have

readily determinable fair values. 4. Changes in value to be recorded directly to Net Assets after tax and other necessary adjustments. Based on the average market price of the respective month.

1,984.2

3

-147.8

Policy for cross-shareholdings reduction

397億円

13%

Unless we consider these holdings to be meaningful, we will

not hold the shares, which reflects the potential impact on our

financial position associated with stock market volatility risk.

Even though we consider the holdings to be meaningful, we will

also reduce them through dialogue with the issuing companies.

1,071.5

Reference: Nikkei 225

1

Impairment

(Devaluation)

Net Gains

(Losses) of

sales 2

1,706.9

FY19 137.1

-80.0

Progress of

reduction JPY 147.8B

Progress rate 49 %(by Mar-22) (Compared to Mar-19)

33

0.46 0.52 0.55

0.03

0.03 0.03

0.08

0.08 0.06

0.02

0.02 0.04

0.61

0.66 0.70

0.70% 0.74% 0.75%

Mar-19 Sep-19 Mar-20

NPL Ratio

Figures in () represent Credit-related Costs Ratio

Consolidated

banking account + trust account(JPY T)(JPY B) banking account + trust account

Consolidated Non Performing Loans based on FRA

Asset Quality

Mar-19 Sep-19 Mar-20

Balance (JPY T) 1.3 1.3 1.6

Reserve ratio 2.46% 3.09% 4.91%

2 banks, banking account


Reference: Other Watch Obligors

+156.3

(17bps)

-19.5

(-2bps)

FY18FY17

-112

(-1bps)-132

(-1bps)

FY19 H1 FY19 Q3 FY19 Q4

-147.2

(15bps)

Japan

Americas

EMEA

Asia

1

FY19 -171.7

(-18bps)

1. Ratio of Credit-related Costs against Total Claim based on the Financial Reconstruction Act (FRA). 2. Representative main branch basis. 3. Including items which cannot be divided by regions such as

adjustments of foreign exchange and others. 4. The report entitled "JFSA's supervisory approaches to lending business and loan loss provisioning" published by the Japan Financial Services Agency

in Dec. 2019.

2

Reserves recorded

from a forward-looking

perspective

Respond to the report by the JFSA

Recorded additional Reserves for Possible Losses on Loans for

some credit in Japan from a forward–looking perspective based on

future projections, reflecting the potential impact of COVID–19 on our

financials for fiscal 2019.

4

-66.8

-80.4

Japan

Asia

EMEA

Americas

-149.1

0.6

-27.6

4.4

2

2, 3

2

22

2

2

34

76%77%

77%

0.6% 0.6%

0.5%


Investment Grade Level Ratio

NPL Ratio

0% 20% 40% 60% 80% 100%

Hong Kong 24%

Singapore17%

Australia11%

Thailand9%

China9%

SouthKorea

7%

Taiwan7%

India6%

Malaysia3%

Other7%

Asia/Oceania42%

Americas36%

EMEA22%

Non-Japanese67%

Japanese 33%

Asia/Oceania:

USD 117.0B

China:

USD 10.0B

1. Including banking subsidiaries outside Japan. 2. Financial Institutions 3. BK, management accounting basis.

Reference :

LBO Loans Outstanding Balance

(Final take) USD 3.4B

(increased by USD 0.4B from Mar. 2019)

Total: USD 278.8B

Loan Portfolio Outside Japan (Mar-20)

Loan Portfolio Outside Japan

Quality of Loan Portfolio

3

BKGCC management accounting basis

1

Chinese Non-Chinese

General CorporateFI

Non-Japanese 56%

Japanese 44%2

35

BK

management accounting basis

Real estate sector

Aircraft related

BK + TB


BK


Mar-20(Reference)

Jun-07

Under-

writing0.7 12.5

Final

take3.4 6.3

Exposure in specific sectors and products

Resource sector

LBO Loans outside Japan

• Over 80% of our exposure to

the non-Japanese upstream

sector, which is impacted the

most by decline in crude oil

prices, is investment grade and

equivalent

• Approx. JPY 0.4T in project

finance transactions can be

impacted by fluctuations in

commodity prices

(JPY T)

• Credit relying solely on cash flow from

underlying aircraft assets is limited at

USD 0.25B

• We are taking a cautious approach for

industries sensitive to economic

fluctuations

• We are controlling underwriting risk by

setting terms and conditions in line

with investor appetite and

strengthening management of

underwriting positions

SMEs,

individuals

Large

corporations

19%

27%

J-REITs

13%NRLs

17%

(USD B)

1

The above is our exposure in the resource sectors excluding mineral resources.

Upstream: crude oil & natural gas mining etc. Midstream: storage and transportation.

Downstream: petroleum refinery and product manufacturing and other.

1

1, 2 1

BK


NRLs: non-recourse loans

Mar-20

Asset-

based0.25

(USD B)

Total

JPY

13.2T

Outside

Japan

25%

In Japan

1. The sum of loans, foreign exchange, and unused commitment lines and other. 2. Credit where the lender is exposed to residual value risk of the asset. Exclusively warehouse facilities premised on takeouts

by ABS and other securities. 3. Including those in which we have won mandates.

Outside

Japan

3

Investment grade and equivalent :

approx. 80%• Large corporations, clients outside Japan

Over 90% of our exposure is to

investment grade and equivalent

• SMEs and individuals, J-REITs, NRLs

We selectively originate deals based

on comprehensive due diligence of

credit, including loan-to-value ratio and

cash flow under stress scenario

2

Mar-20

Non-JP 4.7 3.8 80%

Upstream 2.3 1.9 81%

Midstream 1.3 1.0 79%

Downstream 1.1 0.9 79%

JP 1.7 1.5 89%

Total 6.4 5.3 83%

Investment grade

and equivalent

36

(JPY B)

Leverage Ratio

12.49% 12.76%11.65%

18.24%18.85%

17.25%


4.28%4.42%

4.08%


120.1%

144.3%137.3%

FY17 Q4 FY18 Q4 FY19 Q4

CET1

[Excluding Net

Unrealized

Gains/Losses on

Other Securities]

Tier 1

Total

Consolidated

Consolidated Consolidated

(JPY B)

Capital Ratio

Basel Regulatory Disclosures (1)

CET1 Capital 7,437.0 7,390.0 7,244.7

AT1 Capital 1,755.1 1,842.1 1,779.6

Tier 1 Capital 9,192.2 9,232.1 9,024.4

Tier 2 Capital 1,668.1 1,685.3 1,697.8

Total Capital 1,0860.4 10,917.5 10,722.2

Risk Weighted Assets 59,528.9 57,899.5 62,141.2

Liquidity Coverage Ratio (LCR)

Tier 1 Capital 9,192.2 9,232.1 9,024.4

Total Exposures 214,277.8 208,557.4 220,977.5

Total HQLA 60,159.6 59,797.1 60,112.7

Net Cash Outflows 50,079.0 41,447.8 43,816.7

[10.29%] [10.84%]

15.44%15.94%

[11.00%]

14.52%

2

3

1

1. Net Unrealized Gains (Losses) on Other Securities and its associated Deferred Gains or Losses on Hedges are excluded from the numerator and RWA associated with Net Unrealized Gains (Losses) on

Other Securities (stocks) are excluded from the denominator. Includes the effect of partially fixing unrealized gains on Japanese stocks through hedging transactions. 2. Common Equity Tier 1 Capital.

3. Additional Tier 1 Capital.

(JPY B)

37

Consolidated

1. Capital Buffer = Capital Conservation Buffer (2.5%) + G-SIBs Capital Buffer (1.0%) + Countercyclical Capital Buffer (0.01%). 2. TLAC Eligible Senior Bonds including other adjustments.

3. Deposit insurance fund reserve is allowed to count towards Japanese G-SIBs’ external TLAC. +3.5% of RWA from Mar. 22. 4. Minimum TLAC requirement based on FSB’s final TLAC standard as of

Nov. 9, 2015. Our required minimum TLAC as of Mar. 20 is 16.76%. 5. Deposit insurance fund reserve equivalent amount on total exposure basis calculated based on RWA basis of 2.5%.

6. Foreign exchange rate (TTM) at the respective period end.

Non-JPY

Denominated

6

TLAC Eligible

Bonds and other

Deposit

Insurance5

Total Capital

Ratio

External

TLAC Ratio

≥ 6%(from Mar. 19

onward)

≥ 6.75%(from Mar. 22

onward)

Regulatory

Requirement

Leverage Ratio External TLAC Ratio≥ 16%(from Mar. 19

onward)

≥ 18%

(from Mar. 22

onward)

Regulatory

Requirement

(JPY B) (JPY B)

(JPY T)

18/3末 19/3末 20/3末

External TLAC Ratio (Mar-20)

Basel Regulatory Disclosures (2)

External TLAC

(excluding capital buffers) 13,643.2

Risk Weighted Assets 62,141.2

-2.5%

-1.0%

-0.01%

+2.5%

+5.71%

21.95%

17.25%

External TLAC (including capital buffers) 15,824.3

Total Exposure 220,977.5

Tier2

7.16%

4.08% +0.77%

+0.70%

+1.61%

1.922.53

Risk Weighted Assets Basis Total Exposure Basis

TLAC Eligible Senior Bonds (Outstanding Balance)

3.50

Capital

Buffers

1

TLAC Eligible

Bonds and other

2

Deposit

Insurance

3

4

JPY

Denominated


38

CET1 capital ratio (Basel III fully effective basis)

1. Net Unrealized Gains (Losses) on Other Securities and its associated Deferred Gains or Losses on Hedges are excluded from the numerator and RWA associated with Net Unrealized Gains (Losses) on

Other Securities (stocks) are excluded from the denominator. Includes the effect of partially fixing unrealized gains on Japanese stocks through hedging transactions.

2. The capital floor is also calculated after deducting the associated reserves from risk weighted assets using the standard approach.

3. Assuming approval at 18th Ordinary General Meeting of Shareholders (scheduled for June 2020). 4. Tokyo Stock Exchange Securities Listing Regulations Rule 445.

CET1 capital ratio and shareholder return policy

Net Unrealized Gains (Losses)

on Other Securities

Mar-20

8.2%

Mar-19

8.8%

+0.3%

+0.4%

Numerator

factors

Denominator

factorsEffects of

stabilizing a

portion of

unrealized

gains (losses)

on Japanese

stocks by

utilizing hedge

transactions

(JPY T)

1, 2

Continously maintain capital resiliency under stress

conditions through steady capital accumulation and partial

fix of unrealized gains on Japanese stocks

- We are maintaining the current level of dividends for the time being while

aiming to strengthen our capital base further to enhance returns to

shareholders at an early stage

No change to shareholder return policy prioritizing stable

dividends

FY2020 (estimate): JPY 7.5Cash dividend per share

1-for-10 share-consolidation (planned)

- Raise our trading unit into the Tokyo Stock Exchange’s desirable range

“between 50,000 and 500,000 yen ”

- Enable to set the amount of dividend per share more flexibly and will also

enhance the flexibility of capital management

4

3

Shareholder returns

Partial Amendment to Articles of Incorporation (planned) :

Organizations that decide dividends from surplus, etc.

Share Consolidation

3

- In light of the various feedback through our engagement with

institutional investors, we plan to modify our Articles of Incorporation to

recognize shareholders’ rights to make proposals on dividends

- Board of Directors maintains the idea that the Board of Directors having

the authority to approve dividends maximizes shareholder value

-0.1%

39

1,419.81,272.0


FY18 FY19 FY23

Mar-19 Mar-20

FY18 FY19 FY23

Reduction of

JPY 300B

-147.8

(JPY B)

Common Equity Tier 1 (CET1) capital ratio target level

[Financial indicators used for FY23 targets] 10-year JGB interest rate: 0.15%, Nikkei Stock Average: 22,100 yen, JPY/USD: 101 yen

Progress against the 5-Year Business Plan

Financial Targets

Consolidated Business Profits Consolidated ROE

Reduction of cross-shareholdings

8.2%

8.8%

1 2

3 4

1.2%

5.8%

408.3

Progress

49%

Before recording

one-time losses

7.4%

Approx. 7％-8％

(JPY B)

Before recording

one-time losses

603.1

Approx. 900B

Lower end of the

9-10％ range

1. Excluding Net Unrealized Gains (Losses) on Other Securities. 2. Consolidated Net Business Profits + Net Gains (Losses) related to ETFs (2 Banks) + Net Gain on Operating Investment Securities

(SC Consolidated). 3. Basel lll finalization fully-effective basis, excluding Net Unrealized Gains (Losses) on Other Securities. 4. Acquisition cost basis.

672.5

40

(Compared to March 2017)

Decreased by approx.

19K people

(Compared to March 2017)

Decreased by approx.

130 locations

Reduction excluding

depreciation related to

new core banking system

JPY 140B

Approx. 80K people

Approx. 500 locations

JPY 1.47T

(Compared to FY17 )

1

1. Group Aggregate. New management accounting rules were applied in FY19. The original figures before the recalculation was JPY 1.45T.

2. Compared to the estimate for FY17 as of November 2017 when Fundamental Structural Reforms was announced. 3. Excluding effects of foreign exchange.

Sta

ffL

oca

tion

s in

Ja

pan

Exp

ense

s

(rounded figures)

Progress on Fundamental Structural Reforms

FY24 FY26･･････ FY23

-38 locations

-JPY 58B3

-38 locations

-JPY 89B3

FY21

-1K people

-JPY 31B

-14K people-8K people

-100 locations -130 locations

-JPY １40B-JPY 120B

-19K people

2

-3K people -4K people

Progressedas planned

Results

FY19Target

Policy for FY2020

42

CEO message

- At present, we are facing an unprecedented crisis that is causing a significant downturn in the real economy, as seen in the loss

of demand and other trends. The breadth, depth, and length of the crisis are extremely uncertain.

- This is a critical phase for us to sufficiently exercise our financial function such as appropriate provision of credit to prevent

economic deterioration and achieve an early recovery of the economy

- Looking ahead to the economy and society after COVID-19, we will further accelerate our transition to the next generation of

financial services, which we described in our 5-Year Business Plan, by expanding our business foundations and deepening our

structural reforms to enhance our revenue base.

Our

approach

to the

current

situation

5-Year Business Plan (FY2019 to FY2023)

5-Year

Business

Plan

Plan based

on the

current

situation

FY20 FY21 FY22 FY23

Inevitable to withstand a

challenging situation for the next

two years

Thoroughly prepare for downturn in business environment

Expand business areas aligned with the world after COVID-19

Deepen business with appropriate provision of credit as a starting point

Defense

Offense

Offense

43

FY19

4QFY20 FY21

- 135.0 - 200.0

14 21

CEO message: portfolio soundness

1. Credit-related Costs against period-end balance of Total Claims. 2. Figure for 2008 financial crisis is period-end balance of Total Claims for ex-BK, ex-CB and TB. Total amount is the average amount of

period-end balance. 3. Total amount for corporate customers. 4. Exposure based on internal ratings. 5. For oil, natural gas and mining which are the most sensitive to lower oil prices. For upstream non-Japanese

companies. 6. Outstanding balance with residual risk. 7. S&P.

Credit

Portfolio A portfolio structure that is limited to high-

quality credit also provides resilience

against spillover effects from decline in

crude oil prices

Major changes in risk appetite for

products and loans outside Japan that

incurred large losses during the 2008

financial crisis

Investment grade and equivalent

Real estate related LBOs outside Japan(underwritten amount)

Jun-07 Mar-20

$12.5B $0.7BApprox.

80%

Mar-20

4

Resources related

Investment grade and equivalent

Aircraft related

Limited risk$0.25BOver 80%

Mar-20Mar-20

5 6

4

Increasing liquidity on hand and other

factors have steadily improved the risk

tolerance of customers themselves

Mizuho

Customers

Investment grade and equivalentLiquidity on hand

47% 71%JPY133T JPY224T

3 4

No securitized products with complex

product characteristics and unclear risks

Securitized

Products

Securitized products in foreign currencies

Dec-07 Mar-20

JPY1.5T JPY 0.7T

• CLO： all rated AAA

• ABS：all investment gradeno secondary securitized products

7

Over the next two years, we anticipate a

considerable amount of credit-related costs

stemming from the COVID-19 pandemic

Due to initiatives that we implemented following

the 2008 financial crisis, and other factors, we

will be able to firmly maintain a high degree of

soundness for our credit portfolio

Sep-07 Sep-19 Sep-07 Sep-19

1,2

2008Financial

Crisis

Uncertainty

continues for

the time being

FY07 FY08 FY09

Credit-related Costs （JPY B） - 83.0 - 536.7 - 219.3 - 839.0

Credit-related Costs Ratio (bps) 11 68 31 113

2008 financial crisis

44

CEO message: initiatives looking towards a “after-COVID-19” world

Digitalization

- In advance of the world after COVID-19, the whole of society is already undergoing a dramatic transformation, beginning with ways of living and ways of conducting business.

- We will identify structural changes in society as quickly as possible and act with determination to transition to the next generation of financial services, as described in our 5-Year Business Plan, by expanding our business areas and deepening our structural reforms.

MegatrendsDeclining birthrate and

ageing population Globalization

Customers

World after

COVID-19

Exposure of

vulnerability

due to COVID-

19 effect

Initiatives for

after COVID-

19

Retail

Pursue safe and secure

lifestyles based on the

advancement of digitalization

• Strengthen remote

transaction infrastructure

• Cashless

• Asset management and

succession business

Corporate

Significant changes in

business and financial

strategies

• Provide quasi-equity financing

• Support for restructuring/asset sales

• Support for changes to supply chains

Markets

Market structure of high

volatility with residual excess

liquidity

• Sales & Trading: capture

inflow

• Banking: review asset

allocation flexibly

Corporate

Foundations

Significant reform of working

styles and business

processes based on the

premise of digitization

• Further adoption of remote

work

• Review of office

environment and other

areas

• Increased anxiety about the

future due to unstable income

and health concerns

• Uneven distribution of supply chains

• Rise of anti-globalization

• High dependence on face-to-face channels

• Business process infrastructure hindering digitization

Structural changes in society, economy, and industry due to the COVID-19 effect have already progressed rapidly.

45

Assumptions for the FY2020 plan

1. Calendar year. 2. Fiscal year. 3. End of fiscal year. 4. Fiscal year average.

- The impacts of COVID-19 will continue to remain at least for the next two years

- We set our FY2020 plan based on the assumption that the economy will bottom out in FY2020 H1,

then move into a recovery stage lasting towards the end of 2021. However, the plan may be revised

as necessary, reflecting changes to the business environment in the future

Main

scenario

Economic outlook

Severe downturn in the global economy

unavoidable for 2020

End of 2021 Apr–Jun 2020 reflected in our plan

State of Emergency

(Japan)Peak of COVID-19 Normalization of

the economy

Real

economy

Due to restrictions on economic activities in

countries around the world, global economic growth

in 2020 will turn sharply negative

Policy

interest

rates

As it will take some time until the economy

normalizes, the central banks in Japan, the US,

and Europe are expected to maintain current

policy interest rates for the time being

Financial

markets

While the situation is unpredictable, the responses of

governments and central banks are helping to

mitigate severe weakening of financial markets and

to avoid the financial system instability

Outlook for main indicators

Real GDP

growth rate

2019 2020

Global1

Japan2

+2.9 −2.4

+0.0 −6.5

Policy interest

rate

Long-term

interest rate3

(on 10-yr gov’t bonds)

Stock price4

Exchange rate4

Japan

US

−0.10 −0.10

0.00-0.25 0.00-0.25

JPY/USD 109 108

Dow Jones

Avg.26,800 23,200

Nikkei225

Avg. 21,900 19,200

US 1.80 0.70

Japan −0.10 −0.05

(%)

(%)

(%)

(%)

(%)

(%)

（JPY）

（USD）

（JPY）

46

Earnings Plan

FY2019

Results

FY2020

(Plan)

(JPY B)

Vs.

FY2019

results


(+Net Gains (Losses) related to ETFs and others) 672.5 570.0 -102.5

Credit-related Costs -171.7 -200.0 -28.2


(-Net Gains (Losses) related to ETFs and others) 126.5 80.0 -46.5

Ordinary Profits 637.8 400.0 -237.8

Net Income Attributable to FG 448.5 320.0 -128.5

*Net Gains (Losses) related to ETFs and others (2 Banks) + Net Gain on Operating Investment Securities (SC Consolidated).

Consolidated

*

*

Assumptions under the Earnings Plan: JGB (10-yr) -0.05%, UST bonds (10-yr) 0.70%, Nikkei 225 JPY 19,200, USD/JPY JPY 108

- We are maintaining the current level of dividends for the time being

while aiming to strengthen our capital base further to enhance

returns to shareholders at an early stage

The Shareholder Return Policy to focus on

stable dividends remains unchanged

FY2020 (Estimate)：JPY 7.50Cash Dividend per Share of

Common Stock

-128.5

FY19 FY20

Credit-related

Costs

Other

Net Gains (Losses) related to Stocks (Excl. Net Gains

(Losses) related to ETFs and others)

672.5

Customer Groups

-93.0

Markets

+10.0

570.0

FY20

Net Income Attributable to FG

FY19

448.5

Roadmap

Other

-19.5

-102.5

-15.0

-24.0

-48.0

-6.0

RBC

CIC

GCC

AMC

-200.0

-130.0+ 80.0

320.0


+ Net Gains (Losses) related to ETFs and others *

47

Consolidated Net Business ProfitFinance structure

reforms

17

-50

44

32

15

1

-76

-54

-9

13

Other

570

+109

-189672.5

RBC

CIC

GCC

GMC

AMC

RBC

CIC

GCC

AMC

• Business succession,

real estate related business

• M&A related business and others

• Market Operation (Banking account)

• Negative effect of rate cuts

• Dividend on Securities

• Solution business(Syndicated loans and others)

• Transaction banking, FX

Impact of COVID-19 : –JPY 80B1

(JPY B, rounded figures)

Approx.

700

Approx.

900

FY20 plan FY23 planFY19 FY 21 plan1. Management accounting basis

48

0

50

100

150

200

250

300

350

400

450

500

Finance structure

reforms

FX effect, other

Responding to structural

Issues

Investments in focused areas

and other2

Personnel costs-15

-13

-2

1,407.0

7

13

-20

JPY

1.34 T

Expenses

Structural reform of

IT systems

FM cost structure

reform

New business areas

Cost of responding to regulations in and outside Japan and other

1,407.9

Amortization of new core banking system

1

-3 Overseas cost structure reform

2

1

13 Overseas transaction banking system

2

Expense Ratio

68.0% 71.5%

Approx.

60%


FY20 plan FY23 planFY191. Group aggregate, management accounting. 2. Management accounting basis.

49


• Calculated credit cost for each client

taking downgrade risk into account, for

approximately 70% of our total credit

portfolio

• For the others (approximately 30%),

referring to indicators such as macro

economic indicators, measured credit

cost for each portfolio according to its

characteristics.

12.2

FY20 (Plan)

CIC

RBC

GCC

80.4

54.6

200

FY19 Q4

Results

Forward-

Looking Part

JPY 335B

128

114

90

335

FY19 4Q + FY 20 (Plan) Breakdown by In-house Company

Basis of calculation of

COVID-19 impact

Based on our main scenario

for FY20, reflected maximized

downside risks in the plan

In accordance with current

rules, recorded reserves

proactively as much as

possible

COVID-19

Impact

Recorded additional

reserves from a forward-

looking perspective under

new framework in light of

the principles set forth in

the report published by

JFSA*

* The report entitled "JFSA's supervisory approaches to lending business and loan loss provisioning" published by the Japan Financial Services Agency in December 2019


50

(JPY B)


In-house Company Plan

Net Business Profits Net Income ROE

FY19

Results

FY20

(Plan)

FY19

Results

FY20

(Plan)

FY20

(Plan)YoY YoY

Retail & Business Banking 12.0 -3.0 -15.0 9.0 -61.0 -70.0 －

Corporate & Institutional 246.0 222.0 -24.0 196.0 178.0 -18.0 8.1%

Global Corporate 176.0 128.0 -48.0 108.0 37.0 -71.0 2.5%

Global Markets 208.0 218.0 10.0 143.0 147.0 4.0 8.1%

Asset Management 13.0 7.0 -6.0 6.0 2.0 -4.0 1.5%

In-house Company Total 655.0 572.0 -83.0 462.0 303.0 -159.0

FG Consolidated 672.5 570.0 -102.5 448.5 320.0 -128.5 4.0%

1 2 3

4 4

1. Each Company’s figures are Gross Profits + Net Gains (Losses) related to ETFs – G&A Expenses (Excl. Non-recurring Losses and others) + Equity in Income from Investments in Affiliates –Amortization of Goodwill and other items. FG Consolidated figures are Consolidated Net Business Profits + Net Gains (Losses) related to ETFs and others.

2. FG Consolidated figures are Net Income Attributable to FG. 3. Each Company’s ROE is on management accounting basis. Calculated based on regulated risk weighted assets and other factors such as interest rate risk in the banking account.4. Applied FY20 planned rate (USD/JPY: JPY 108).

51

Sustainability

We are facing a crucial moment to tackle an unprecedented crisis and will fully exercise our financial functions while maintaining a strong defense, expand our business foundations with an eye towards the world after COVID-19 and deepen structural reforms.

Policy for FY2020

Three pillars of structural reform under the 5-Year Business Plan

Solving social issues

• Strengthen sustainable

business through

engagement with clients

• Strengthen climate

change risk management

Finance structure reformsBusiness structure reforms Corporate foundations reform

• Strengthen relationships

by supporting clients with

funding assistance, in

addition to expanding in

business areas adapted

to the world after COVID-

19

• Make steady progress on

various initiatives,

including changes to

group companies and the

full roll out of our new HR

strategy

• Use digital technology to

facilitate remote work

• Strengthen our profit base

through thorough expense

control and credit

management

• While allowing for a

temporary lower CET1

capital ratio, transition to a

management approach with

a sufficient focus on capital

resilience

52

Finance structure

reformsOutlook of Risk-weighted Assets

JPY 62.1TLoan increase to support

customers

Client downgrade in credit ratings due to

deterioration in business performanceGradually decrease

as economy recovers

Credit

deterioration

COVID-19 impact will be visible gradually

Mar-20

Originally expected RWA increase

in 5-yr Business Plan

Loan increase

Mar-21

RWA

+JPY

1T

+JPY 5T

Impact of the COVID-19 on risk-weighted assets (based on current regulations)(rounded figures)

+JPY 3T

+JPY 2T

53

Finance structure

reforms

Focus on current stable

dividendsCapital utilization phase

Outlook for CET1 capital ratio (Basel III fully effective basis)

Capital strategy

Invest for

future growth/

returns to

shareholders

8.0%

9.0%

Even though the increase in risk-weighted

assets due to the COVID -19 effect is

temporarily expected to lower the CET1

capital ratio, capital resilience is maintained

under the stress situation.

We will comprehensively consider the

business environment such as the Group’s

business results, profit base, status of

capital adequacy, and domestic and

international regulatory trends such as the

Basel framework in determining returns to

shareholders for each period.

No change in the policy of aiming for early

achievement of target CET1 capital ratio in

the lower end of the 9% to 10% range.

Target CET1 capital

ratio

Stress resistance

level

Temporary

downward

pressure due to

increased RWA

8.8%

Initial Expectationwhen 5-yrBusiness Planwas made

Improve CET1 capital

ratio through

normalization of RWA

and capital accumulation

Lower end of

the

9 -10% range

Capital accumulation

is in good progress,

exceeding the original plan

Excluding Net Unrealized Gains

(Losses) on other Securities, with

taking bear fund effect into account

54

Retail & Business Banking Company

Accelerate the shift to digital and remote services

Cashless initiatives

Smartphone-based contactless payment service

Launched in March 2019

Strengthen remote services

Acceptance of online services

Increasing awareness for safety and security

Less resistance to remote transactions,

allowing digitalization to accelerate

QR code payment platform backed by banks

Targets

(end FY20) Users 1.25M

Participating

Stores 740K

Affiliated merchants 2.72M

Growth

of

J-Coin

*Includes group companies

No. of bank accounts

opened onlineTotal amount of

payments

Strengthen

remote

sales

framework

• Successfully create a sales framework that can

operate effectively regardless of physical

location by utilizing online meetings with clients

and digitalizing proposals, contracts, etc.

Expand

online

services

• Expand services that can be completed

entirely via the internet (e.g. opening new

accounts, KYC and submitting forms)

No. of visitors

in branches

2.2X-34%

Business

structure reforms

*

Changes in

client mindset

and behavior

(monthly) (monthly)

Apr. 2020Apr. 2019 Apr. 2020Apr. 2019

93 financial

institutions totaling around 80

million personal

accounts

Approx. 20*

companies use

J-Coin Pay for

expense settlement

Users:

250KParticipating stores:

400K

Mizuho WalletLaunched in

March 2018

approx. 1.13M

approx. 1.59M

19/上 19/下

Approx.

JPY 8BReleased

in Mar.

2018

FY18 FY19 H1 FY19 H2

55

Accelerate group-wide strategy for investment and

succession business

- Utilize the best approach for each segment (face-to-face or

remote)

- Focus on business owners and high net-worth individuals with

acute succession and real estate needs

- Increase investment balance by expanding asset formation

transactions

- Group-wide unification of our product planning and group

company sales strategies

Corporates: Strengthen relations by responding

to financing needs

Increasing need for voluntary asset formation

Individuals: Respond flexibly to changes in

mindsets and behavior

Increasing needs to secure financing

Changes to industry structure and diversification of business succession needs

Business

environment

changes

Changes in

client mindset

and behavior

*In the Small and Medium Enterprise Agency ranking of no. of cases of supporting the formulation of special business succession plans. Refers to the results of supporting

companies as a certified support institution pertaining to the special measures applicable under the business succession tax system adopted with the tax system revisions in 2018.

Conduct follow-up with increased customer engagement.

Focus on meeting asset formation and investment needs.

Smooth supply of funds

- Provide appropriate funding support and quasi-equity loans

Provide solutions for industry restructuring and

asset price fluctuations

- Utilize M&A and real estate

- Approach businesses regarding succession needs

Approach growing companies

- Make equity investments in businesses with high potential for

future growth

(compared to

Apr. 2019)

2.3x

No. of investment

trust sales

Installment-type

investment trust sales

Miz

uh

o

SC net increase in

equity investment trusts

Co

mp

an

y A

Co

mp

an

y B

Co

mp

an

y C

Co

mp

an

y D

No. 1 for3 consecutive

years

Current status of initiatives

Apr. 2020 results

(compared to

Apr. 2019)

6xApr. 2020 results

Business

structure reformsRetail & Business Banking Company

No.1in Japan

Capacity to provide solutions

MBO M&A

JPY 10 B

(Mar-20)

18,000companies

(increase of 5,000

from the end of

FY2018)

Business succession needs

Consulting results *

Testamentary trusts (individual)

Business Succession Fund

Mizuho’s strengths

Considering

to increase

Relieve anxiety for the future and preparing for emergencies

56

Ability to provide seamless

solutions spanning BK, TB, and SC

End

Mar.

Financial advisory for corporate

acquisitions & business sell-offs

Raise capital utilizing capital markets

Strengthen consulting on financial/corporate strategies

and business restructuring

Example of how this strategy could be applied

Business portfolio reorganization

Supply chain restructuring

Sustainable management (ESG)

Proposals on acquisition finance methods

Utilization of real estate with unrealized gains

Acquisition finance

Transaction banking

Sustainable finance

Unused land intermediary &

appraisal

Hold C-suite level discussions based on research and analysis

Strategy execution

TB

BK

SC

Expand business that originates from appropriate credit

extension

OriginalAfter

revision

Respond to emerging client needs

Approx.

JPY 10T

Advance C-suite level discussions focusing on the world after COVID-19

As of

May 18

Client loan applications

Investment budget for

quasi-equity financing

Knowledge of industry sectors

Macro analysis

Strengthen quasi-equity financing

Support business portfolio

restructuring

Share client business risks

Strategic investment of

mezzanine and equity capital

Provide the most appropriate solutionsSupport formulation of

financial/corporate strategies

Our

strengths

No.1 industry

research capabilities

in Japan

Ability to execute and

implement financial

and capital strategy

• Provide funding based on appropriate credit decisions

• Help clients strengthen liquidity by utilizing their assets

• Financing proposals to restore sufficient capital

C-suite level discussions

Business

structure reformsCorporate & Institutional Company

Doubled

57

19/4 20/4

Grow US capital markets business

capturing market recovery

Leverage relations to flexibly capture business opportunities as

capital markets recover

Examples of expanding business opportunities

Expansion of bond issuance (DCM)

Acquisition finance related to

industry restructuring

Equity issuance (ECM)

Maintain and improve

transaction tier

Mizuho’s strengths Enhance capabilitiesx

Production

concentration in

China etc.

Capture new trade flows stemming from COVID-19

Revision and diversification of supply

chains and production locations

Market presence in Asia

and global network

Strengthen sales, enhance

business platform, etc.

Grow transaction banking business in Asia

capturing changes in trade flowStrengths of the Global 300 strategy

Accumulate quality assets through

emergency support lending

Strengthen DCM initiatives leveraging

lending relationship

High added-value proposals in

anticipation of the world after COVID-19

• Focus corporate resources on blue chip clients (Global 300)

which have stable credit and present opportunities to

capture ancillary business

Strengthen client engagement to respond to

customer needs amidst COVID-19 pandemic

Credit stabilityAncillary

business

opportunities

Capital markets recovery

Deepen relations leveraging the advantages of

the Global 300 strategyKey strategy based on Mizuho’s strengths

Increase of

approx.

300%

Europe & DCM in the Americas

Gross profits

Pursue upside income while limiting downside risk

Business

structure reformsGlobal Corporate Company

Apr.

2019Apr.

2020

(monthly)

Global

300

58

Temporary increase in lending

Ordinary loans/investments

Carry

income

Capital

gains

Even when faced with the impact of COVID-19, aim to utilize

market volatility to capture trading revenue as well as

increase sales revenue by providing a range of solutions

Global Markets Company

• Shift to a carry income-focused strategy,

mainly in foreign bond portfolio, in order

to steadily accumulate profits

• Strengthen risk-taking capabilities by

accumulating unrealized gains over the

medium to long term

Continue management with a focus on the balance between

realized gains and unrealized losses/gains

Portfolio managementStrengthening ALM operations

Sales & Trading

*

* Asset and Liability Management

Respond to increasing demand for foreign currency

lending due to the impact of COVID-19

Business

structure reforms

• Flexible funding based on demand, securing the necessary funds

without delay

• By assessing the overall non-JPY balance sheet, conduct ALM ensuring

stability, efficiency, and compliance with liquidity requirements

- As usual, make optimal funding

including customer deposits, bond

issuance, CD, repo, etc.

- Avoid placing too much emphasis

on maintaining the loan-deposit

ratio of 70%

- In addition to customer deposits,

take advantage of highly

maneuverable short-term markets

Assets

Others(Due from banks,

stocks, etc.)

Foreign bonds

Short term

Repo

Medium/long term

Increase

Loans

Customer

deposits

Funding

Structure of realized gains (Conceptualization)

Increase the ratio of carry income

Interest

rate

Derivatives

Equities

• Accelerate profit streamlining through unifying banking and

securities operations in the Americas and Japan

• Capture inflows from Japanese and international institutional

investors which are likely to increase going forward

• Capture market transactions arising from clients’ corporate

restructuring or changes in financial strategy

• Begin offering new products (e.g. equity derivatives)

Non-JPY Balance Sheet

59

Business

structure reforms

IBM JapanIntegration

Integration

Discussing a collaboration between IBM Japan

and MHOS in the area of system operations

Business Alliance

Mizuho Financial Group

Mizuho Operation

Service

(MHOS)

Mizuho Trust

Systems

Mizuho Information &

Research Institute

Mizuho Research

Institute

ConsultingIT

developmentResearch ConsultingIT

development

Integration Integration

New Mizuho company Consolidated subsidiary

• Organically and flexibly combine our foundations in

these three fields where we excelMizuho’s strengths

A core subsidiary supporting non-financial

business areas

Collaboration with an external partner with high-

level knowledge and expertise

• Expertise in large-scale system

operations at a mega bank

• Operations personnel

...etc.

• Operational knowledge and

the global standards in the

latest technology

• Extensive experiences in

system operations in Japan

...etc.

IBM Japan’s strengths

• A platform for experts providing support in non-

financial areas

Research backed by advanced analytics

Professional consulting regarding business challenges

and social issues

IT/digital solutions via cutting edge technology and

business insight

Changes to group company structures

IT operationsIT operations

60

Office relocation

Consolidate and restructure BK, TB, and SC head office functions and frontlines functions

within the Otemachi / Marunouchi area of Tokyo

Promote flexible work

styles by introducing “free

address” workspaces

Create co-working space

to facilitate collaboration

and partnership with

external organizations

Accelerate proactive

business collaboration

with external partners

Unify the head office

functions and frontlines

functions of each group

company

Strengthen our framework

for promoting business as

a unified group

Objective/impactSpecific actions

FG, BK, TB, & SC

Group management

head office functions

• Create a work environment that enhances

creativity and productivity

• Reduce facility management costs through

consolidation of head office functions

Ochanomizu GofukubashiUchisaiwaicho

Flexibly adjust staff and department

allocation

BK, TB, & SC

Customer service

functions

New

Marunouchi

Otemachi FS

Otemachi HO

BK SC TB

Corporate

foundations reforms

Increase productivity by

facilitating active

communication among

employees

61

Corporate

foundations reformsChannels: Leveraging MINORI to accelerate channel reform

- Completion of communication to

all offices

- Begin developing sales

personnel at branches

FY19 FY20 FY21 FY22 ･･･

- Identify operations to link to

APIs (Routine operations to

digitalize)

Accelerate employee advancement to retail RM positions

Continue developing new sales personnel

TrainingApprox. 1,100

employees

All branches

- Established consolidation

timeline

- Expand consolidation from

FY19 H229 branches

Approx. 180branches

Approx. 250branches

All branches (FY23)

(all figures on cumulative basis)

All branches37 branches

No. of locations

being reduced-38 offices -100 offices -130 offices (FY24)

- Embark on full-fledged

reorganization in FY19 H2

Initiatives

8 operations

21 operations

High-workload routine

operations (account

opening, transfers, etc.)

Other routine

operations

Centralize back office operations at branches

Reduce branch operations

Consolidate back

office operations

(branches without a

back office)

Tablets at branches

directly linked to core

banking system

(API linked)

Develop sales

personnel

(shift to front office)

Str

ength

en c

onsultin

gS

trea

mlin

e o

pera

tions

Reduce operational workloads and free up sales capacity

All branches

Remote meetings

(including BK, TB,

and SC)

- Strengthen consulting

capabilities via remote tools and

expand cooperation across BK,

TB, and SC

62

Corporate

foundations reforms

Enhance customer experience through shifted sales force resources

Data entry

operationsFill in forms

Tablets at branches

Online banking

Back office

operations at

retail branches

Document storageHandled over the

counter

Back office

consolidation

Customers

MINORIReduce 8 routine operations Approx.180 branches

Straight-through processing (STP)

No admin

operations

Consolidated to

operations centers

Crowded

branches

In

person

Digital Enhanced convenience

Greatly increase customer

convenience by utilizing tablets at

branches and digital channels

Consolidate a broad range of

operations into operations centers,

including those other than routine

operations, such as contacting

customers

Back office

consolidation

Less admin

operations

Channels: Enhance operational efficiency

63

Content recommendations are

personalized utilizing AI

21%

10%

9%60%

Full roll out of the new HR strategyCorporate

foundations reforms

Strengthen foundations for learning:

Digital learning platform

• Provide a one-stop solution for personalized learning and diverse

opportunities to take on new challenges, thereby encouraging

employee growth and a transformation of employee behavior

• Form a community where employees are free to connect and

learn

Expand opportunities to take on new challenges

both within and outside the company Revisions to remuneration

496 522

820

167 175275

FY17 FY18 FY19

Internal job postings

No. of employees

Internal dual-hat

assignments

External dual assignment /

part-time work

36%

28%

36%

20-29 y.o.

30-39 y.o.

40+

No. of job types offered: 106

No. of applicants: 127

Changing the mindset of employees, together with expanding

opportunities to take on new challenges, is allowing many employees to

become more proactive in taking specific actions toward their career goals

Expand New New

New highs in the number of

applications and appointmentsApplications: approx. 170

Approved: approx. 120

(remainder are under

consideration)

Bonus

- Reflects the level of difficulty of work based

on the expertise and skills required for each

business field

- Adopt an evaluation structure for all

employees where bonuses are linked to

company financial results

- For those in executive job grade positions,

seniority-based raises will be transitioned

to bonus compensation

Create a system under which employees are appropriately

compensated for striving to increase their expertise and take on

new challenges, rather than their seniority or post

• Revise the pension structure to enable the stable payment of

future pension benefits

Consulting

Professional

practice

InstructorOther

Salary

Wide range of external content

Strengthen

the link to

performance

Emphasis

placed on

expertise and

duties

Career design support Compensation aligned to the exercise of expertise

Revision of pension structure

Strengthening sustainability initiatives

65

External

environment

Strengthening our sustainability initiatives: Taking firm action toward a low-carbon society

Strengthening group-wide sustainable

businesses promotion

the sustainable and steady growth of Mizuho and through which,

achieving environmental conservation, and the sustainable

development and prosperity of the economy, industry, and society both

in Japan and around the world

Building a robust corporate

governance structure and

strengthening disclosure

• Established Environmental Policy

clarifying oversight by the Board of

Directors and our stance on climate

change

• Proactively and appropriate disclosure

to ensure transparency

Society

Investors

Clients

Even greater attention to climate change due to rising severity of meteorological disasters

Calls for companies to make further environmental, social, and governance (ESG) disclosures in

line with expansion of ESG investment

Trend towards seeing the need to respond to ESG and SDG-related challenges as business

opportunities as well as business challenges

Strengthening the management of

climate change risks

• Increase positive impacts and

decrease negative impacts, both

direct and indirect

• Through dialogue with clients, provide

multi-faceted support for initiatives

addressing the Sustainable

Development Goals (SDGs) and

Environmental, Social, and

Governance (ESG) challenges

• Positioning climate change risks as

“emerging risks” in our top risk

management framewordk

• Enhancing our response to the TCFD

Recommendations (p. 79)

• Environmental and Social

Management Policy for Financing and

Investment Activity (p. 80)

Sustainability for

Mizuho stands for

66

19年度 30年度

• Businesses and innovations which contribute to adapting to climate

change, decarbonization and the like, leading to

new business opportunities for Mizuho (sustainable business)

• Through engagement with clients as a unified group provide both

financial and non-financial solutions

Sustainable finance & Environmental finance targets

Sustainable business

Strengthening group-wide sustainable businesses promotion

FY2019 – FY2030

cumulative total : JPY 25T

(of which the target for

environmental finance is JPY 12T)

* (1) Finance for clients where the intended use of funds is environmental and/or social projects, (2) Financing to support and facilitate clients’ response to ESG/SDG-related areas, including finance which

considers, evaluates or requires clients’ response to ESG/SDGs-related areas.

Finance

Consulting

Support for solving

social challenges

Asset management

and products

Investo

rs

Clie

nt c

om

pan

y

BK SC

• Green bonds and loans

• Sustainability bonds, loans, etc.

BK TB IR RI

SCBK TB

SCBK TB AM

Mapping out our sustainable solutions

• Consulding for addressing ESG/SDGs

• Provide industry insight / business

matching, etc.

• Support for entrepreneurs working on SDGs

• Business succession support, other

• ESG investment

• Develop and offer ESG/SDG-related

investment products

Financial and non-financial solutions

Business promotion through engagement

Clients

*

Identify ESG and

SDGs-related

challenges and

needs

Engagement

Provide

solutions

FY19-FY30 total:

JPY 25T

(JPY 12T)

Provide consulting as a

unified group

FY2019 FY2030

67

Approx. JPY 120B to JPY310B

FY19 FY30

Coal-fired power generation sector

Strengthening our response to climate change risks

in finance and investment decisions

Climate-related scenario analysis based on TCFD

Recommendations

Target to reduce outstanding credit balance for coal-

fired power generation facilities

Strengthening the management of climate change risks

1. Transition risk generally refers to risks stemming from widespread policy, legal, technological, and market changes which occur as the result of transitioning to a low-carbon economy. 2. Estimate for electric

power sector and energy sector (oil, gas, and coal) in Japan. 3. Physical risk refers to risks such as the loss or damage of assets as a direct result of climate change, as well as impact on business performance

due to supply chain disruptions as an indirect result of climate change. 4. Excluding business to which Mizuho had already committed prior to the start of this policy. 5. Target based on our Environmental and

Social Management Policy for Financing and Investment Activity

JPY 299.5B

Transition risks

Physical risks

Scenarios used in anticipating impacts on customers’

business

Dynamic scenario: with transformation of business structure

Static scenario: without transformation of business structure

Dynamic scenario would involve some impacts in the short

term but would limit the increase in credit costs over the

medium to long term

1

3

FY2050

5

Zero balance

2

Dynamic

scenarioStatic

scenario

Reduce 50%

compared to FY2019

Reduce 50% by FY2030 compared to FY2019

Reduce to zero balance by FY2050

FY2019 FY2030

No financing for the construction of new coal-fired power

generation facilities

Other sectors

4

Added coal mining sector

Added confirmation of measures to address transition risk in the

oil and gas sectors and other updates

Increase in credit costs through FY2050

Impact on collateral: limited

Impact of business stagnation:

Increase in credit costs through FY2050

Up to JPY 52B(In either 2°C or 4°C scenarios)

Appendix

69

Credit card business strategy

* MMC Card: Mizuho Mileage Club Card combining ATM card and credit card functions.

Direction of strategy

(1) Enhance flexibility

Dissolved comprehensive

business alliance with Credit

Saison. BK made UC Card a

wholly-owned subsidiary to

attain flexibility of the

strategic development of UC

Card business.

(2) Enhance collaboration

Comprehensively develop

membership business,

merchant business, and

processing by enhancing

collaboration between UC

Card and Orient Corporation.

• Expand processing business• Enhance adoption to next-generation

payment services

Me

mbe

rsh

ip

busin

ess

Merc

ha

nt

busin

ess

Pro

ce

ssin

g

Credit Saison

Qubitous

UC Card

Splitting/

Transferring

UC Card

Ongoing MMC Card*

collaboration

UC Card-related

processing

Orient Corporation

(2) Enhance

collaboration(1) Enhance

flexibility

UC Card-related

processing

• Expand MMC Card lineup

• Add MMC Card functions

to smartphones apps

BK consolidated

subsidiary

BK affiliate under the

equity method

(approx. 49% held by

BK)

Before After(Oct 1,

2019）

（as of March 31, 2020）

74%→100% held by BK

Dissolve comprehensive business alliance with Credit Saison on October 1. 2019

70

Leasing strategies

1. Renamed from MG Leasing Corporation on May 18, 2020. 2. Management accounting basis

Mizuho Marubeni

Leasing

23.5%

50%

5%(planned)

1

50%Financial / leasing

businessSubsidiaries and affiliates

outside Japan

Equity method affiliate

Considering merging with Mizuho Marubeni Leasing in the future

Adding a leasing business Specific initiatives

Enhance collaborative sales efforts as the only equity method affiliate

leasing company within the Group

No. of deals captured through

collaborative efforts 2Mizuho Leasing

3 Strengthen collaboration with Marubeni

1 Focus on growth areas

2 Create new business models

Servicing business, joint business operations,

and trade flow support

Enhance initiatives in global, medical/healthcare,

energy/environment, and other sectors

Collaboration in leasing businesses and projects outside Japan,

investment in businesses outside Japan

Strengthen group collaboration

Approach to the leasing business Major initiatives by Mizuho Leasing

Number of deals captured

through collaborative efforts

jumped in the 2H mostly driven

by transactions with large

corporates

Nov. 2019 Announced acquisition of 25% ownership in Airchastle,

a major global aircraft operating leasing company in

the U.S.

Jan. 2020 Announced acquisition of 50% ownership in PLM, the

largest leasing provider of refrigerated trailers in the

U.S.

Mar. 2020 Announced acquisition of 20% ownership in Ricoh

Leasing

Approx.

JPY +300Bn

FY2018 FY2019

71

17/9 18/3 18/9 19/3 19/9 20/3

AI score-based lending Launched Sep. 2017

Online lending for individuals (AI-based Credit Scores)

Score improvementby inputting personal information

A.I.-based Score

• Utilize AI and Big Data

• Score customer’s credit

and potential

• Immediate score

indication

• Input information by oneself

• Almost 150 questionnaire

entries for potential score

improvement

• Potential score

improvement by providing

transaction data with BK,

Softbank/Y!mobile and

Yahoo

(JPY B)

A.I. score rewards Launched Oct. 2018

Based on the customer’s Score Rank,

rewards related to self-improvement,

career development, lifestyle

improvements and the like are offered

Product Competitiveness

• Low-interest rates: 0.8% to 15.0%

• Max. lending limit: up to JPY 10M

• Full process can be completed online

• Same day lending possible

Customer Convenience

Number of scores

generated

Lending

limit

(K)

• Acquired accreditation for Information Bank (P accreditation) in

Dec.19

Data businesses Expected to launch in FY2020

0

500

1000

0

10

20

40

JPY 35.5B/

1,200K scores

As of

Mar. 2020

30

72

Mizuho Smart Business LoansOpen alliance

Online lending for small and medium-sized enterprises (SMEs)

×First for a Japanese megabank

（as of Mar 31, 2020）

Product Overview Features

Expansion of the customer base

Launched May 2019

No. of account openings 4,000+

The number of account openings increased rapidly due to swift

responses to customer requests, done completely remotely

SMEs already receiving loans

Approx. 100K

Expected size of business

Maximum

lending limit JPY 10 million

Interest rate 1 -2 % rage

to 14%

Term Up to one year

Collateral Unnecessary

2 business days from

application to loan in the

shortest

Completely online

No branch visit required

No need to submit

financial statements

Credit analysis model

incorporating AI technology

Secure online platform

High quality user experience /

user interface

Multi-faceted data

coordination

Approx.

800KBK

clients

Initial target segment(mainly clients with JPY 1B or less in

annual sales)

Companies with loans: 10,000

Loan balance: JPY 30 Bby March 31, 2022

73

Collaboration with Line Corporation

Launched

August 2019

Launched

June 2019

• Calculate Line Score based on

behavioral data on Line services

and utilize them for various

services

• Number of registered users : 4M

(as of Jan. 2020)

• Utilizing Line Score to provide

unsecured loans to consumers

• Loans for everyday expenses

Name

Business

objectives

• Smartphone-based next-generation bank

• Using data from Line’s services for anAI scoring model

• Loan and data businesses, utilizingthe scoring model (Subject to regulatory

approvals and the like)

Applicable

law• Banking Act (license required)

• Money Lending Business Act

(registration required)

Capital

structure

(planned)

• Line Financial: 51%

• BK: 49%

• Line Financial: 51%

• BK: 34%

• Orient Corporation: 15%

Business

plan

• FY2019 H1: Established a preparatory company

• FY2020: Official launch

• June 2019: Launch of service

Line Bank Preparatory

Company (provisional)

Line Credit

Corporation

84 million monthly active users in Japan

Expand our reach to digital natives

Line’s consolidated subsidiary Line’s consolidated subsidiary

74

Quantitative

J-Coin Pay

Safety and security backed by banks

Digital currency platform offered by banks

As of

Mar. 2020

Qualitative

1.25M

locations

Financial institutions

across Japan

(incl. megabanks and

major banks)

Over 4M

Affiliated merchantsParticipating

financial institutionsUsers

Target customers of all the participating financial institutions

Establish J-Coin Pay as the new platform to leverage

existing customer contact points

- Service must be connected to user’s bank account

- B2P Approach (reimbursement of expenses, payroll, etc.)

- Access to more than 80 million individuals and corporations nationwide

By

Mar. 2024

Medium-to long-term goal

* Number of affiliated merchants includes informal consent

*

Approx.

400K

locations930.25M

*

75

Selection of

alternative

reference rates

O/N RFR

Compounding

(fixing in arrears)

Term RFR IBOR

Timing of rate

determination

Compounded in

arrears

Compounded in

advance

Compounded in

advance

Example:

Yen LIBOR

TONA

(Compounded in

arrears)

Term TONA TIBOR

Events regarding LIBOR

LIBOR Discontinuation

Mizuho’s response

Amend contracts which reference LIBOR

Alternative reference rates

Go through the transition processes to

alternative reference ratesL？

1. London Interbank Offered Rate. 2. Financial Conduct Authority. 3. Financial Stability Board. 4. Risk Free Rates. Rates that include almost no bank credit risk are nearly risk free.

5. Uncollateralized overnight call rate.

5

AvailableUnder

developmentAvailable

Update our systems in preparation of the

transition to alternative reference rates

Revise our operational procedures based on

updates to our systems

Provide explanations to clients for transactions

that reference LIBOR

Hold internal trainings for RMs to prevent

conduct risks

July 2017:

July 2018:

March 2020:

The Chief Executive of the UK FCA indicated in a speech the

potential for discontinuing LIBOR by the end of 2021

The FSB issued a statement on reforming interest rate

benchmarks, recommending a transition from IBORs to

alternative reference rates (RFR )

UK authorities announced that the impact of COVID-19 will

not affect the timeline for discontinuing LIBOR by the end of

2021

1

2

3

4

76

IT / digital: New core banking system (MINORI)

Core banking system

(3rd generation online)Remitt-

anceDeposits

Redesign

Redesign

Redesign

Redesign

Shared operations platform

Loose coupling

Individual components

Fintech firms Public cloud providers

Open collaboration with other companies and integration of new ideas

Link with APIs

Standardized account

ledgers

Branch

terminalsATMs Web

Branch

terminalsATMs Web

MINORI

Before migration to MINORI After migration to MINORI

Enhance stability of IT

system

Streamline operations, shift

to paperless

Reduce costs Enhance capacity to provide

services Limitations on external connectivity,

maintenance, and extensions

Stability and security challenges

Simple and easy-to-maintain IT systemComplex structure causing many

challenges

Internal

API

Branch

tablets

External

API

Remitt-

anceDeposits

Datamart

Lending Other

OtherLending

77

Cybersecurity measures

- Cyber attacks were identified as a top risk of management

leading to Declaration of Cybersecurity Management

released in June 2018

- Cyber attack countermeasures are continually strengthened

through regular collaboration with external organizations

- Uninterrupted, reliable, secure, and attractive online services

are provided to our customers

Basic policy

Senior management

Sharing, reporting

AttackersWarning signs

Postings on social media

or other locations

Suspicious websites

Suspicious

communications

Attacks

Targeted cyber attacks

Website alteration

DDoS attacks

Hacking

Unauthorized fund

transfers

Mizuho

Management framework

Industry, government, andacademic organizations

around the world +External specialist

organizations

Conduct regular unauthorized access tests in collaboration

with third parties

Malware analysis

Technical Team

Incident Response Team

Forensics

Security Operations Center

Mizuho-CIRT*

Constant

reinforcement

of measures

Collaboration

& partnership

Continual

improvement

via a PDCA

cycle

Identifi-

cation

Preven-

tion

DetectionResponse

Recovery

Correctly identify what

requires protection

Protection against

new methods

of attack

Minimize

damage

* Mizuho Cyber Incident Response Team

Customer information

and other data

Monitoring/

response

Information assets

requiring protection

Data log collection

& analysis

Threat

information

78

Diversity & Inclusion

Item Target Achieve by

Management positions filled by women

(General Manager and Manager equivalent)20% July 2024

ItemLevel to be maintained

continuously

Management positions filled by employees hired

outside Japan65%

Percentage of new graduates hired for

management track jobs who are female30%

Paid annual leave taken by employees 70%

Eligible male employees who take childcare

leave100%

Environmental Footprint

CO2 emissions basic unit (CO2 emissions/total floor area)

Long-term target: reduction by 19.0% by FY2030 compared to FY2009

Medium-term target: reduction by 10.5% by FY2020 compared to FY2009

Green purchasing ratio target for paper : at least 85% (FG/Core group

companies)

Paper recycling ratio target : at least 95% in FY2020 at major offices in

Japan

Financial Education

Total financial education participants : 60,000 or more from FY2019 to

FY2023

Sustainability KPIs and targets

Industrial development & innovation, environmental

considerations, sound economic growth

• Arragement of sustainable finance / environmental finance

JPY 25T in total from FY2019 to FY2030

(of which, JPY 12T in environmental finance)

• Credit balance for coal-fired power generation providers based on

our Environmental and Social Management Policy for Financing

and Investment Activity

Reduce by 50% compared to FY2019 by FY2030,

Reduce to a balance of zero by FY2050,

Declining birthrate and aging population, plus good health

and lengthening lifespans

Asset formation to prepare for the future

• Net increase in investment products (Individual investors)

• Total number of individual customers who purchased Investment

products

• Net increase in publicly offered investment trust assets under

management

Industrial development & innovation

Smooth business succession

• Number of clients provided with consulting

Acceleration of innovation and industry transformation

• Number of IPOs as lead underwriter / rank in terms of underwriting

amount

Business Corporate foundations

New

New

1

2

1

1

1

1. Total FG, BK, TB, SC in Japan 2. Total FG, BK, TB, SC outside Japan 3. Derived from electricity consumption at business sites in Japan

3

79

Included responding to climate change as a key pillar of our business strategy and enhanced our initiatives to address it in order to proactively

fulfill our role as a financial services group in the effort to achieve a low-carbon society, looking ahead of FY2050.

Enhancing our response to the TCFD Recommendations

1. International Energy Agency 2. Sustainable Development Senario. Scenario under which advancement of low-carbon holds the increase in the global average temperatures to below 2°C.

3. New Policies Senario. Scenario which assumes that the measures pledged to under the Paris Agreement are put into place. 4. Intergovernmental Panel on Climate Change

Governance• Established Environmental Policy

• Board of Directors surpervised initiatives to address climate change

Strategy

• Qualitatively analyzed transition risks and physical risks by climate change for each industry sector over short-, medium-, and long-

term time frames

Transition risks

Scenario design Analyze using Dynamic/Static approach based on IEA’s SDS and NPS scenarios

Analysis resultsIncrease in credit costs by FY2050: approx. JPY 120B to JPY 310B

(estimate for “electric utilities” and “oil, gas and coal” sectors in Japan)

Physical risks

Scenario designAnalysis based on IPCC’s Representative Concentration Pathways 8.5 (4°C scenario) and

2.6 (2°C scenario) as a base

Analysis results

Impact on collateral value: limited

Impact of business stagnation: increase in credit costs by FY2050: Up to JPY 52B (in either

2°C or 4°C scenario)

• Enhanced sustainable business promotion framework as a united group to capture expanding business opportunities

Risk

management

• Positioned climate change risks as “emerging risks” and regularly monitored related indicators

• Updated our Environmental and Social Management Policy for Financing and Investment Activity

Indicators and

targets

• Established targets pertaining to risks and opportunities

• Monitoring indicators:

- Scope 1 and Scope 2: CO2 emissions and energy usage

- Scope 3: CO2 emissions from business trips

- Environmental impact of new large-scale power generation projects (amount of contribution to CO2 emissions) and

environmental conservation benefits (amount of contribution to CO2 emission reduction)

• Target to reduce our own environmental foootprint:

CO2 emissions basic unit of electricity used at our offices in Japan (CO2 emissions / total floor area)

Long-term target: achieve a 19% reduction compared to FY2009 levels by 2030

Medium-term target: achieve a 10.5% reduction compared to FY2009 levels by 2020

1 2 3

4

80

In addition to Mizuho’s policy on initiatives involving sectors which have a high possibility of causing adverse environmental and social

impacts, Environmental and Social Management Policy for Financing and Investment Activity has been revised to be a comprehensive policy

covering transactions that are prohibited or require additional due diligence regardless of industry sector.

Policies on Specific Industrial Sectors

Transactions Prohibited regardless of SectorTransactions which Require Additional Due Diligence regardless

of Sector

Environmental and Social Management Policy for Financing and Investment Activity

1. Previously the Policies on Specific Industrial Sectors. 2. Excluding projects that have received prior consent from the relevant national government and UNESCO. 3. Excluding cases permitted under any

country’s reservation(s) to the convention. 4. Excluding business that had been committed prior to the start of this policy.

Sector Additions and enhancements

Weapons• avoid providing financing or investment for antipersonnel landmines and biochemical weapons, in addition to cluster

munitions

Coal-fired power

generation• do not provide financing which will be used for new construction of coal-fired power plants

Coal mining

• decisions regarding financing and investment involve a thorough examination of the impacts on the environment, industrial

safety and health, and other areas

• undertake engagement with clients to confirm their measures for addressing transition risk accompanying climate change

Oil and gas • undertake engagement with clients to confirm their measures for addressing transition risk accompanying climate change

Palm oil and lumber • tightened status confirmation and requests from the perspectives of the environment, human rights, and climate change

• Projects with an adverse impact on wetlands designated as Wetlands of

International Importance under the Ramsar Convention or on UNESCO

World Heritage sites

• Projects violating the Convention on International Trade in Endangered

Species of Wild Fauna and Flora (Washington Convention)

• Projects involving child labor or forced labor

• Projects with adverse impacts on indigenous people’s local

communities

• Projects involving land expropriation that causes forced relocation of

residents

1

2

3

4

81

Declining birthrate and aging

population, plus good health

and lengthening lifespans

Asset formation in preparation for the future

Expand services that respond to a society with a declining birthrate and aging

population

Convenient services in line with diversifying lifestyles

Industry development &

innovation

Smooth business succession

Industry structure transformation

Acceleration of innovation

Sound economic growth

Strengthening capital markets functions

Transition to a cashless society

Environmentally conscious social programs

Environmental considerations Promoting action to address climate change and supporting the transition to a

low carbon society

Governance

Enhancing corporate governance

Risk management/strengthening of IT infrastructure, and compliance

Disclosure of information in a fair, timely, and appropriate manner, and

holding dialogue with stakeholders

Personnel Personnel development and creating workplaces that give employees a

sense of purpose

Environment

& society

Environmental and human rights considerations for investment and lending

Addressing climate change

Improving financial and economic literacy and promoting activities that

contribute to addressing the needs of society and local communities

Reference: Key sustainability areasB

usin

ess

Co

rpora

te f

ou

nd

ation

s

Open partnerships and collaboration

with a diverse range of stakeholders

Growth in Asian economic zones

Creating resilient social infrastructure

82

Nadeshiko Brand 2020Health & Productivity

Stock Selection 2020

S&P/JPX Carbon

Efficient Index

MSCI Japan Empowering

Women Index (WIN)

FTSE Blossom

Japan Index

(Themed Index)(General Index)

FTSE4Good

Index Series

SNAM

Sustainability Index

Dow Jones

Sustainability Index

Asia Pacific

MSCI ESG Leaders

Indexes

Bloomberg

Gender-Equality IndexSTOXX Global ESG

Leaders Index

Mizuho MUFG SMFG

74 58 59

67.1 55.2 40.6

FTSE 4.5 3.4 2.9

ESG-related Recognition

Incorporation in Social Responsibility Indices

Third-party Evaluation

ESG-related Recognition and Awards

GPIF selected ESG Indices

1

1

2

ESG Scores

3

1. Robeco SAM: Percentile ranking, Sustainalytics: Total rank compared to peers. Those near 100 are evaluated highly. Source: Bloomberg (as of May 18, 2020).

2. FTSE Overall ESG Score (as of Dec. 2019): Maximum score of 5. 3. https://www.mizuho-fg.com/csr/mizuhocsr/rating/index.html

83

14times

Offsite meetings on management issues

Outside directors and the management line share information

and exchange opinions thereby deepening mutual

understanding

Corporate governance - Highlights

Main initiatives for improving the effectiveness of the

Board of Directors

2times

Outside Director Sessions

Meetings attended only by outside directors, at which

discussions on future initiatives are held after reflecting on

past activities and sharing issues

Director training

Perform an analysis and evaluation of the effectiveness of the Board of

Directors each year and disclose a summary of the results

Evaluating the effectiveness of the Board of Directors

Continually provide and facilitate opportunities to acquire and

improve knowledge

All directors

• Individual sessions, training, etc. by executives or guest speakers

Outside directors

• Ensuring the prior explanation and follow-up of proposals to the

Board of Directors

• Visits to domestic branches, etc.

The effectiveness of the Board of Directors as a whole

has been secured accordingly and is making steady

progress

6 or more years

2 directors

3 years or more but less than 6 years

3 directors

Less than 3 years

8 directors

Average

tenure of

directors

2.6yrs

6 outside

directors

7 internal

directors

Composition of the Board of Directors

Tenure of directors

* Approach following the 18th Ordinary General Meeting of Shareholders (tentative)

*

*

(FY2019)

FY2018

assessment:

8 non-executive

directors

5 directors who

concurrently serve as

executive officers

84

Name Position/Responsibility

Tatsufumi

Sakai

Representative Executive Officer

President & Group CEO

Satoshi IshiiSenior Managing Executive Officer

CDIO, Group CIO, Group COO

Motonori

Wakabayashi

Senior Managing Executive Officer

Group CRO

Makoto

Umemiya

Senior Managing Executive Officer

Group CFO

Hiroaki EharaManaging Executive Officer

Group CHRO

Yasuhiro

SatoChairman

Hisaaki

Hirama

Board of Directors

1. Planned to be discussed at our General Meeting for Shareholders to be held in June 2020. 2. The fields in the chart above are not representative of all of the areas of expertise the directors possess.

3. Executive Officers as defined in the Company Act.

NamePosition/

Responsibility

Fields where directors are especially

expected to contribute

CorporateManage-

mentLegal Financial

AccountingFinance Technology

Tetsuo Seki ● ● ●

Tatsuo Kainaka ●

Yoshimitsu

Kobayashi● ●

Ryoji Sato ●

Masami

Yamamoto● ●

Izumi Kobayashi ● ●

Nom

inating

Co

mp

en

sa

tion

Au

dit

Outside directors (6 people)Internal directors (7 people)

2

Nom

inating

Co

mp

en

sa

tion

Au

dit

Au

dit

Nom

inating

Co

mp

en

sa

tion

Nom

inating

Chair

man

Nom

inating

Au

dit

Ris

k

No

n-e

xecutive

Chairperson

Ris

k

1 1

3

85

Executives Responsible for Business Execution1

Compensation framework/program for executives

Performance

Payments

Base Salary

Stock

Compensation II

Stock

Compensation I

Linked to the results of

organizations that each

executive is in charge of,

and other factors

Fix

ed c

om

pe

nsation

Vari

able

co

mpe

nsation

Linked to achievement of

the 5-Year Business Plan

and other factors

(e.g. Consolidated Net

Business Profits)

17.5%

50.0%

17.5%

15.0%

Non-executive management

85.0%

15.0%

In principle

fixed

compensation

only

within the range of 0% to

170% of the standard

amount for each position

within the range of 0% to

130% of the standard

amount for each position

Paid on a monthly basis

Payment at the time of

retirement from position

Compensation

may be

reduced or

forfeited

depending

on performanceDeferred

payment

over

3 years2

1. Individual director, executive officer as defined in the Companies Act, executive officer as defined in our internal regulations and specialist officer of FG, BK, TB and SC.

2. Performance payments for certain amounts shall be deferred.

Stock

Cash

67.5%

32.5%

86

Audits the

execution of duties

Managem

ent

Outside director (non-executive)

Executive internal director

Non-executive internal director

LegendPresident & Group CEO Banking (BK) Trust (TB) Securities (SC)

In-house Companies

Units

Groups

Audits the legality and appropriateness of the

execution of duties by executive officers

Determines the content of proposals for the general meeting of

shareholders regarding the appointment and dismissal of directors

Nominating Committee

Determines

compensation

Determines the compensation for each individual director and

executive officer

Board of

Directors

Determines the compensation for

each individual executive officer

Compensation Committee

All members shall be outside independent directors

Chairman: outside director

Non-executive directors shall comprise a

majority of the directors

Executive internal

director

Outside director

(non-executive)

Non-executive

internal director

Chairperson

Outside Director Session

Risk Committee

Human ResourcesReview Meeting

General Meeting of Shareholders

Determines the content of proposals regarding

the appointment and dismissal of directors

• Appoints and dismisses executive officers

• Delegates decisions on business execution

• Supervises the execution of duties

Su

pe

rvis

ion a

nd

Au

dit

Holding Company (FG)

Audits the legality and appropriateness of the execution of duties

by directors and executive officersAudit Committee

The majority of members shall be independent outside directors

RBC, CIC, GCC, GMC, AMC

GPU, RCU

Planning, Management

and Internal Audit Strategic Planning, Financial Control & Accounting, Risk Mgt, Human Resources, IT & Systems, Operations, Compliance and Internal Audit

Chairperson

Chairperson

Corporate Governance Structure

Appointment of Directors

All members shall be independent outside directors

* Executive Officers as defined in the Company Act

Chairperson

*

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